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To end a contract with a daycare, you can simply notify them in writing without needing to provide a reason. Check your contract for a cancellation section, fill it out and send it to the daycare. If this section is not available, a simple letter stating your decision will suffice. The contract will end automatically upon receipt of your notice. If you paid in advance, the daycare must refund you within 10 days, but they may charge for services already received. A penalty could be imposed, up to 10% of the services you have yet to receive, capped at $50.