This is just gun shop owner greed... nothing more. I'd call back and tell them thanks, but no thanks. Also tell them that they have lost a customer due to their greed and tell them you will never do business with them again. Hell, if they are like most FFLs and charge 25 bucks, It's basically free money for them to receive the firearm. It takes about 5 minutes to do the paper work, if that.
My FFL is a gunsmith that lives down the road from me and only charges 20.00. But, I have gone to a couple of gun stores in the past with no issues like you're having. I'd look for someone like that.