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A daycare contract is typically signed when parents hire daycare services for their children. Daycares are businesses where children are cared for while parents work or attend to other obligations. There are several types of daycare, including 24-hour facilities for overnight care, center-based locations where children are dropped off, home-based daycares at residential settings, and full-service daycares, which are often more expensive. Each daycare must adhere to state regulations, including building and safety codes and staff-to-child ratios. All daycares must be licensed and in good standing to be listed in their respective state’s daycare registry, in accordance with specific state laws.