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A daycare contract is typically signed when parents hire daycare services for their children. Daycare refers to businesses that care for children while parents are at work or fulfilling other obligations. There are several types of daycare, including 24-hour services for overnight care, center-based daycare for drop-off at commercial locations, home-based daycare at residential locations, and full-service options typically catering to infants and toddlers. Daycares are regulated by each state’s childcare administration, adhering to specific building and safety codes, as well as required adult-to-child ratios. All daycares must be licensed and in good standing to be included in the state's daycare registry.