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To end a contract with a daycare, you can simply notify them in writing without giving a reason. Find the cancellation section in your contract and fill it out to formally end the agreement. If there is no designated section, a letter will suffice. The contract will terminate upon receipt of your notice. If you have prepaid, the daycare must refund you within 10 days, but can charge for services rendered and impose a penalty up to 10% of unpaid services, capped at $50.