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A daycare contract is typically signed when parents engage daycare services for their children. Daycares serve as businesses that care for children while parents work or fulfill other commitments. There are various types, including 24-hour daycare for overnight care, center-based daycare for drop-offs at commercial locations, and home-based daycare in residential settings. Daycares can cater to specific age groups, with full-service options often being more expensive. Each daycare is regulated by state child care administration offices, which enforce laws regarding building safety and staff-to-child ratios. All daycares must be licensed and maintain compliance to remain listed in state registries.