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To end a contract with a daycare, you just need to notify them in writing. Check your contract for a cancellation section, and fill it out to send to the daycare. If there is no specific section, you can simply send a letter. The contract will end on the date of your notice. If you prepaid, the daycare must refund within 10 days, but can charge for services received and impose a penalty of up to ten percent of the remaining services cost (max $50).