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A daycare contract is typically signed when parents hire daycare services for their children. Daycares serve as places for child care while parents work or fulfill other obligations. They can be categorized into different types: 24-hour daycare for overnight stays, center-based care where children are dropped off at a commercial location, gym-based care for working out parents, and home-based daycares located in residential areas. Infant and toddler care is usually more expensive. Daycares are regulated by each state's childcare administration, which sets laws concerning safety codes and adult-to-child ratios. A daycare must hold a valid license and be listed in the state’s daycare registry to operate legally.