Now that is just stupid, you can't use your own aircraft for any thing you want.(legally)
Now I really think we do need a civil war.
or move to a state where we can operated without the nazis.
That is strange. The Port of Friday Harbor that spomsors the airport where you used to be based has such 'uniform commercial standards' and includes flight instruction as one of the activities that require a lease or permit. Seems odd that you would not be familiar with this standard FAA process.
If he has access to a private airport that doesn't put limits on the number of flight schools, it may not be an issue.