Key Takeaways

  • A daycare contract should clearly outline expectations, responsibilities, fees, and policies to protect both provider and parents.
  • Essential clauses include payment terms, hours, termination procedures, behavior expectations, and emergency protocols.
  • Detailed child care policies should be attached to the contract or referenced directly.
  • Additional sections such as liability waivers, trial periods, and renewal clauses help prevent misunderstandings.
  • Free daycare contract templates can help providers get started but should be customized to meet specific needs.
  • A signed, dated daycare contract is legally binding and enforceable when properly executed.

Contracts for daycare providers are important for those in the childcare business. These contracts can help protect your business from potential liability, but they also provide operational assistance in defining the responsibilities of parents and the facility itself. No matter whether you're the new parent or the potential nanny, working with a professionally written contact can bring peace of mind to both parties. 

Importance of Family Child Care Contracts 

Typically, child care providers are small business owners and should have written contracts and policies in place to assist with parent communication. These contracts are the agreements that spell out the child care services and costs, while policies detail how the provider will care for the child. These contracts and agreements include pertinent information. 

All contracts need to contain basic information like the names and ages of the child/children as well as parent's and/or guardian's contact information. Payment details should be explicitly explained and include forms of payment accepted, when payments are due, any overtime rates or late pick up fees, deposit due (if applicable), and special holiday and vacation rates. 

Contracts can also discuss termination procedures, including what the cut off is for parents to stop services with short notice. There should be a clause that states you will still receive payment during the termination phase, regardless of whether the child is under your care or not.

Why a Signed Daycare Contract Is Legally Important

A daycare contract is a legally binding agreement once both parties sign it. This document not only outlines service expectations but also helps prevent disputes. Without a written contract, disagreements about payment, care quality, or pickup rules are harder to resolve and may require mediation or legal intervention. Always ensure that both the provider and the parent or guardian sign and date the contract, and keep a copy for each party. This serves as documentation that terms were clearly communicated and agreed upon.

Basic Elements to Include in Your Contract for Daycare

At a minimum, your contract for daycare should include some standardized elements, such as the following: 

  • Names of all parties — including children's names — and contact information
  • Contract terms
  • Times and hours of operation
  • Cost of services and how payment is to be made
  • Add-on fees, such as late fees and field trip fees
  • The procedures to terminate the contract
  • Signatures, which are important to ensure the contract can be enforced in court

You can also discuss different policies more in-depth that will answer a variety of the client's questions and help you avoid misunderstandings with the parent(s). For parents, working with a daycare provider who is dependable and has a clear standardized policy can make them feel more secure. Returning to work after having a new baby, or taking on more hours at work, is stressful for new parents. They want to make sure their child is well taken care of.  

Additional Clauses to Strengthen Your Daycare Contract

Beyond the basic elements, consider including the following clauses in your daycare contract to make it more comprehensive:

  • Trial Period Clause: Allows for a 1–2 week adjustment period, during which either party can terminate the agreement with short notice.
  • Late Payment and Non-Payment Policy: Outline fees for late payments, grace periods, and steps for continued non-payment.
  • Holiday and Provider Time Off: Specify which holidays the daycare will be closed and how much notice will be given for provider absences.
  • Substitute Provider Policy: Clarify if and when substitute caregivers may be used and whether parents will be notified.
  • Emergency Contact Procedures: Clearly state how parents will be reached and what steps will be taken during a medical or other emergency.
  • Changes to the Contract: Define how amendments are made and how much notice is required to implement them.

Applicable Child Care Policies to Include in Your Contract

Contracts for daycare providers should include detailed descriptions about a wide range of policies. 

  • Your policies should include important illness policies that cover a range of topics, such as the following:
    • What steps are you taking to reduce risks of illness?
    • At what point do you send a child home?
    • When are kids required to stay home if they are sick?
    • When can they return to child care?
    • How are injuries and emergencies handled?
  • What about provisions for when you get sick as the provider? How will that work — is there a substitute?
  • Discuss medical records and how you maintain those records, when they need to be updated, etc.  
  • Other policies that should be addressed in child care contracts:
    • Outdoor play policies
    • Policies on trips outside of the family child care location
    • Policy on bringing toys from home
    • Mealtime policies
    • Rest and naptime policies
    • Potty training policies
    • Diaper changing
    • Curriculum
    • Supplies
    • Rules on child's behavior
    • Policies on reporting suspected child abuse or neglect
    • Pickup policies
    • Permission policies (situations that may require written release)

Some childcare professionals like to review agreements with parents several times a year, or at least once a year. When you're reviewing the contract with the parents, have them sign and date each page so there is no question whether or not they understood each section. If there is a point in time where you feel it's necessary to modify the contract or make a change to your policies, it's advised to give the parents time to adjust. Consider two to four weeks' notice so they have the opportunity to plan accordingly. 

If you're looking for sample child care contracts, Childcarenet.org and Providerwatch.com have good examples.

Downloadable Daycare Contract Templates and Resources

If you're unsure how to structure your daycare contract, starting with a professional template can be helpful. Several online resources provide free, editable daycare contract templates that include standard clauses and formats:

  • ChildCareLounge.com – Offers printable sample contracts and handbooks designed for customization.
  • VancoPayments.com – Features a downloadable daycare contract template with a full guide for childcare providers.
  • State Licensing Agencies – Some state websites offer recommended or required contract elements for registered providers.

When using a template, be sure to tailor it to your business's specific policies and legal requirements in your state. Consider having your final version reviewed by a qualified attorney.

Benefits of a Child Care Contract

Daycare contracts can protect both providers and clients by having everything in writing. By preparing a daycare contract that encompasses all these policies, you can potentially avoid disputes and unpleasant encounters with the parents.  

Do your clients respect your business? By communicating rules and expectations, you also position yourself as a professional daycare business.

Tips for Reviewing a Daycare Contract Before Signing

Parents should always read and review a daycare contract carefully before signing. Here are key tips to follow:

  • Verify All Charges: Ensure you understand all listed fees and any conditions under which extra charges may apply.
  • Understand the Termination Clause: Check how much notice is required and whether early termination incurs penalties.
  • Ask About Contingency Plans: Understand what happens if the provider becomes ill or unavailable.
  • Clarify Discipline and Behavior Policies: Make sure the daycare’s methods align with your own values.
  • Request Clarifications in Writing: If something seems vague or open to interpretation, ask the provider to clarify in writing before you sign.

These steps help ensure that both parties start the relationship on the same page and help avoid future misunderstandings.

Frequently Asked Questions

  1. What should be included in a daycare contract?
    A daycare contract should include the names of all parties, care schedule, payment terms, late fees, policies on illness and behavior, and termination procedures.
  2. Is a daycare contract legally binding?
    Yes, once both the provider and parent/guardian sign the agreement, a daycare contract is legally enforceable.
  3. Can a daycare provider change the contract terms?
    Yes, but any changes should be provided in writing, with a notice period (typically 2–4 weeks) before they take effect.
  4. Should I use a template for my daycare contract?
    Templates can be a helpful starting point, but you should tailor them to reflect your business's unique policies and state regulations.
  5. What happens if there's a dispute over a daycare contract?
    Disputes may be resolved through direct negotiation, mediation, or legal action if necessary. A clear, signed contract greatly aids dispute resolution.

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