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A daycare contract is typically signed when parents hire daycare services for their children. A daycare is a business that cares for children while parents work or fulfill other obligations. Types of daycare include 24-hour facilities for overnight care, center-based locations where children are dropped off, home-based daycares at residential homes, and full-service options that tend to be more expensive. Daycares are regulated by state child care administration offices, which enforce laws on safety, building codes, and staff-to-child ratios. All daycares must be licensed and maintain good standing to be listed in state daycare registries, adhering to specific regulations.