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To terminate a daycare contract, you can do so without providing a reason. Simply notify the daycare in writing of your decision to end the contract. Locate the cancellation section in your contract to fill out, or send a letter stating your intent. Your contract will end on the date you send the notice. If you paid in advance, the daycare has 10 days to refund you, but they can charge for any services already rendered. A penalty may apply, amounting to 10% of the cost of unreceived services, capped at $50. For instance, with 16 weeks remaining, this penalty would be calculated accordingly.