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To end a contract with a daycare, you simply need to notify them in writing, without needing to provide a reason. Locate your daycare contract, which should include a cancellation section. Fill it out and send it to the daycare, or write a simple letter stating your decision. The contract will terminate automatically on the day you send the notice. If you've paid in advance, the daycare has 10 days to issue a refund. However, they can charge for any services already received and may impose a penalty, which is 10% of the price of the unreceived services, capped at $50. For example, if there are 16 weeks left in the contract, the penalty would apply accordingly.