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A daycare contract is typically signed when parents hire daycare services for their children. A daycare is a business providing care for children while parents are at work or fulfilling other obligations. There are different types of daycare: 24-hour for overnight care, center-based for drop-offs at commercial locations, gym daycare for while parents work out, and home-based where care is provided in a residential setting. Infant and toddler care tends to be more expensive. Daycares must adhere to state regulations regarding safety codes and adult-to-child ratios and must hold a license to be listed in the state’s daycare registry. Each state has specific laws governing these aspects.