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A daycare contract is typically signed when hiring daycare services for a child. Daycares are businesses that provide childcare for parents who are working or have other obligations. There are different types of daycares: 24-hour facilities for overnight care, center-based daycare where children are dropped off at a commercial location, and home-based daycare where care is provided in a residential setting. Daycares can cater to infants and toddlers and may offer full services, often at a higher cost. Each daycare is regulated by state child care administration offices, which enforce specific laws regarding building codes, safety, and staff-to-child ratios. Daycares must be licensed and registered to operate in their respective states.