So I'm meeting with an agency tomorrow and I think they are a bit sketchy -they charge 'membership fees.'
Quote from their website -
What do I get for my membership fee?
Online Profile and Portfolio management.
Submission of your profile to casting agents and producers
Access to our workshops and development classes.
Should I run for the hills?
I say run for the hills simply because there are many agencies out there that DON'T charge for any kind of membership. Traditional/standard modeling and talent agencies don't have models as "members" of their agency--they're either signed or they're not.
Some companies call themselves "agencies" but don't operate exactly like the traditional ones, which allows them to charge for things like the items you described. This sounds more like a casting agency than a model or talent agency but since I don't know the details or who the company is, I can't say for sure.
If you've got other offers on the table or other actual agencies to submit to, I'd say go for those and see what pans out. If this is a casting agency and not a traditional talent/modeling agency, that's fine, too, but it all depends on what the fees are and the quality of the types of clients who use their services to find actors/models.
I hope that helps and best of luck!