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To end a contract with a daycare, you simply need to notify them in writing of your decision. You don’t need to provide a reason. First, locate your daycare contract, which should contain a cancellation section to complete and send back. If this section is unavailable, a simple letter will suffice. Your contract will terminate on the date the notice is sent. If you've paid in advance, the daycare has 10 days to refund your deposit. However, they can charge for services already provided and may impose a penalty, capped at 10% of the remaining service cost, but not exceeding $50. For instance, if there are 16 weeks left, this penalty would apply accordingly.