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A daycare contract is typically signed when parents hire daycare services for their children. Daycares provide care while parents work or attend other obligations and come in various types: 24-hour daycares for overnight care, center-based daycares where children are dropped off at commercial locations, and home-based daycares in residential settings. Costs can vary, with infant and toddler care usually being more expensive. Daycares are regulated by each state's child care administration, which enforces specific laws on building safety codes and staff-to-child ratios. All daycares must be licensed and maintain good standing in their state's daycare registry, adhering to state regulations.