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A daycare contract is signed when parents hire services for their children. Daycares are business establishments that provide care while parents are at work or preoccupied. Types of daycare include 24-hour facilities for overnight care, center-based programs for drop-off at commercial locations, home-based setups in residential areas, and full-service options typically for infants and toddlers, which tend to be more expensive. Daycares are regulated by each state’s child care administration, which enforces laws regarding safety codes and staff-to-child ratios. A license is required for operation, and daycares must be in good standing to be listed in the state’s daycare registry.