Sounds pretty damn expensive to me.
I would be INCREDIBLY skeptical about a BJJ class with no rolling. I have never heard of that, rolling is essential period. You pair white belts up with more experienced guys and guys around their level, but they roll period.
I would stay away from this place and find another. So in order to roll they want you to pay more, AND sign a new contract?
Typical BJJ classes are about 100 to 150 at most, and that is at top gyms with legit blackbelts. The contracts are usually shorter than 2 years but it isn't unheard of. (The BJJ school I go to has 2 year contracts).
I absolutely think you are getting played. An increase in dues, plus a new contract? That is bullyouknowwhat.
Now I can see if they did an increase in dues because it covered some sort of insurance coverage for you. (Though 79 bucks a month for insurance is incredibly steep, IBJJF charges you 50 for the year I believe for membership that included insurance coverage for competetion). Lets say for arguments sake it was to cover some sort of insurance liability.. there shouldn't be a new contract drawn up.. they should honor your original 2 year contract.
The initial price you were paying is about the norm for BJJ period, 120 bucks isn't too bad and is about average. But I don't know any place that charges you more just to roll, and that charges you 225 bucks a month WITH a contract. Some schools offer better deals with contracts than without.. i.e. 180 bucks a month with no contract, 100 bucks a month with a 2 year contract, etc. But 225 with a 2 year contract... get the hell away from there. That is highway robbery.
And the fact that they have done ANY progression, even a stripe without you so much as rolling... that is SKETCHY to a high degree.
I would leave that place quick fast and in a hurry. I would see what I can do about getting out of my contract if under one still. Hell against a place like that I might be willing to stop payment via my account, let it go into collections and do a settlement just to get the hell away from there and train at another school.
I'd also report this school to the better business bureau. Bring it up on as many websites as possible.
http://www.bullshido.net
http://www.subfighter.com
http://www.ibjjf.org
Whomever this school is affiliated with.. be it Alliance, Gracie, Machado, Nova Uniao etc. I would email the home organization about this school as well. I'd check to ensure he is a legit blackbelt as well: http://www.ibjjf.org/blackbelts.htm
Seriously.