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A daycare contract is typically signed when parents hire daycare services for their children. Daycares are businesses that care for children while parents work or fulfill other obligations. There are various types of daycare: 24-hour, center-based (commercial locations), gym-based (for parents working out), and home-based (residential locations). These facilities cater to different age groups and full-service options tend to be more expensive. Daycares are regulated by each state's child care administration, which enforces specific building and safety codes, as well as regulations on adult-to-child ratios. All daycares must be licensed and maintain good standing on their state's daycare registry.