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In the video, Lady talks about how to plan holidays and closing days for a day care. She recommends getting a new calendar every December and choosing 10 main holidays to close the day care. She also includes three additional closing days for special events like graduations. Lady communicates the holiday schedule to families in advance, typically one year before. She provides an example of her holiday and closing day schedule, totalling 13 days including 10 holidays, 2 training days, and a special event day. All details are clearly communicated and attached to the contract.