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A daycare contract is signed when parents hire daycare services for their children. Daycare refers to businesses that care for children while parents are at work or occupied. There are various types of daycare, including 24-hour facilities for overnight stays, center-based care where children are dropped off at a commercial location, and home-based care at residential settings. Daycares can cater to different age groups, with infant and toddler care often being more expensive. Each state regulates daycares through its child care administration, enforcing specific building and safety codes, and staffing requirements. Daycare facilities must be licensed and maintain good standing in their state’s daycare registry to operate legally.