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A daycare contract is signed when parents hire daycare services for their child. Daycares provide care for children while parents work or attend to other obligations. The types of daycare include 24-hour facilities for overnight stays, center-based care for daily drop-offs, and home-based care at residential locations. Daycares can be infant or toddler-focused and are typically more expensive. Each daycare is regulated by state laws governing building codes, safety, and staffing requirements, and must hold a valid license to be listed in the state's daycare registry. Compliance with these regulations is crucial for operation.