This is common selling practice, the goal is to get the monthly hosting to get paid for their work.

The problem is when you dont want their hosting. They just lost their paycheck. [people are making 1000's a month just on hosting doing this]

You are going to find almost all your turnkey websites set up like this. And when you want out of the hosting they want to charge you. I did a turnkey at 1 time for 7.95 a month but if I wanted to move it they wanted $200. [I was buyer]