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To end a contract with a daycare, you need to notify them in writing. Look for a cancellation section in your contract - fill it out and send it to the daycare. If there is no specific section, a simple letter will suffice. The contract will automatically end on the date you send the notice. If you prepaid, the daycare has 10 days to refund you, but they may charge for services already rendered. A penalty of 10% of the remaining services may apply, up to a maximum of $50.