One of the reasons I stopped teaching was because I realized that people don't want to learn, they want to be taught that they are good and that they are doing ok, ie: to be catered to.
If they have prior MA experience and that experience is in a fighting system, you are usually ok because they value proof over anything else, real proof, the kind you get by actually sparring with a person.
If their prior MA experience is in a system where they did not fight, you are in some serious trouble UNLESS they are looking to learn to actually fight.
Yours is a tough situation because you are teaching friends, a cardinal no-no in my book ( and that goes typically for family).
Why?
Because friends and family never see you as anything other than who you are first and, in this case, a teacher second ( and a teacher of a hippie style like Taiji to boot).
The don't respect you as a teacher because they know you.
You have two choices and both MAY end badly:
Tell them to go.
Beat the crap out pf him and earn his respect.
Just saying...
Psalms 144:1
Praise be my Lord my Rock,
He trains my hands for war, my fingers for battle !