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A daycare contract is typically signed when parents hire daycare services for their child. Daycares are businesses that provide care for children while parents work or attend to other obligations. Types of daycare include 24-hour facilities for overnight stays, center-based care at commercial locations, home-based care at residential settings, and infant/toddler full-service options, which tend to be more expensive. State child care administration offices regulate daycares, enforcing laws related to building safety codes and staff-to-child ratios. All daycares must hold a license and be listed in their state's daycare registry to operate legally.