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In this video tutorial, Matthew guides viewers on creating a daycare contract using Legal Templates. He instructs viewers to follow a link provided in the video description to access LegalTemplates.net. Once there, viewers should navigate to the business forms section, specifically clicking on "view all business forms." After searching for "daycare contract," they can preview the PDF version to see its layout. Matthew emphasizes that the transaction type for the contract is service-based. He then prompts viewers to enter relevant information, such as the service provider's address and details, before proceeding to create the document.