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A daycare contract is typically signed when parents hire daycare services for their children. Daycare refers to a business where children are cared for while parents attend work or other commitments. Types of daycare include 24-hour facilities for overnight care, center-based locations for drop-off, home-based daycare in residential settings, and options for infants and toddlers that are often more costly. Daycares are regulated by each state's child care administration, which enforces specific laws regarding building safety, adult-to-child ratios, and licensing requirements. All daycares must hold a valid license to be listed in the state’s daycare registry.