Daycare contract template: what to include and how to set your terms

By the BizDocs Studio team · Updated November 1, 2026

Key points

•A daycare contract is a written agreement between a child care provider and the parents that sets the schedule, tuition, fees, closures, absences, illness rules and how care ends.
•The single most important line: tuition pays for the child's space, not for the days the child attends. Sick days, family absences and your listed holidays are paid unless the contract says otherwise.
•The terms behind most disputes are late pick-up, late payment, paid holidays, provider vacation, family vacation and notice to leave. Put a number or a tick box on each one.
•Use it with an enrollment application (contacts, pick-ups, allergies, routines) and a parent handbook. A nanny or babysitting contract is a different document, because a nanny usually works for the family.

Ask home daycare providers what goes wrong and the answers are rarely about the children. They are about money and time: a parent who expects a discount for the week their child had a cold, a family that takes two weeks at the beach and wants the space held for free, a pick-up that keeps sliding past closing time.

A clear contract, signed before the first day, settles these in advance. Below is what to put in a daycare contract, a worked example of how the tuition terms play out over a month, the forms that go with it, and the mistakes that make free templates fail. Your state's child care licensing rules come first; nothing here replaces them.

What a daycare contract should include

Parties and child: your business and license number, the parents or guardians, the child's name and date of birth, and the start date.
Schedule: your open hours, the child's contracted days and times, what extra hours cost, and how much notice a schedule change needs.
Tuition: the amount, weekly or monthly, the due day, payment methods, and a plain sentence that tuition holds the space whether or not the child attends.
Fees: registration, deposit, late payment, late pick-up and returned payment. Write each as a number, not "a fee may apply".
Holidays and closures: the dates you close, whether tuition is due for them, professional days, and how you announce weather closings.
Provider vacation and illness: how much time you take, how much notice you give, whether tuition is due, and what happens when you are sick.
Family vacation and absences: how many weeks a family can take at a reduced rate, with how much notice, and that everything else is charged.
Illness and medicine: when a child stays home, how fast a sick child must be picked up, and that medicine needs a signed authorization. Put the details in the handbook.
Pick-up: release only to parents and listed adults with photo ID, and what you do if someone appears impaired.
Ending care: notice on both sides (two weeks is common), a trial period, and the reasons you can end care immediately.
Signatures: both parents if possible, and you.

Worked example: four weeks of tuition

Tuition is $260 a week, paid each Monday. The contract lists Thanksgiving and the day after as paid holidays, gives one family-vacation week a year at half tuition with two weeks' notice, and charges $1 a minute for late pick-up.

Week of	What happened	Amount due
11/02	Normal week	$260.00
11/09	Child home sick Tuesday and Wednesday	$260.00
11/16	Family vacation week, notice given in October	$130.00
11/23	Closed Thursday and Friday (paid holidays); pick-up 12 minutes late on Tuesday	$260.00 + $12.00
Total	Four weeks	$922.00

Without written terms, this family could reasonably argue for paying three days in the sick week ($156), nothing for the vacation week and three days in Thanksgiving week ($156): $260 + $156 + $0 + $156 = $572 in tuition instead of $910, or $338 less. Over a year and several families, that gap is the difference between a business and a hobby.

Neither answer is unfair if the family saw it before they signed. The problem is having no rule, then negotiating one on a Monday morning at drop-off.

Settings to choose

Term	Common choice	Note
Tuition	Paid in advance, weekly or monthly	Due whether or not the child attends
Notice to leave	2 weeks in writing	Tuition due for the notice period
Trial period	First 2 weeks	Shorter notice on both sides
Late pick-up	$1 per minute	By your clock, from the contracted time
Sick child pick-up	Within 1 hour of your call	Match your licensing rules
Paid holidays	6 to 8 a year	List the dates in a schedule
Family vacation	1 week a year at no charge or half tuition	With 2 weeks' notice, no carry-over

Pick numbers you will enforce. A late fee you waive every week teaches families it does not exist.

Template · Word & PDF

Home Daycare & Child Care Forms Pack

Daycare contract, enrollment application, parent handbook and the everyday forms for a home daycare or small center.

See the template · $17

The enrollment forms that go with it

The contract covers money and time. The enrollment application covers the child. A good daycare enrollment form asks for:

Both parents or guardians, with phones, employers and work hours, and whether there is a custody or protective order. Without a court order on file, providers usually cannot refuse to release a child to either legal parent; ask your licensing agency if you are unsure.
Adults authorized to pick up, and anyone who is not.
Emergency contacts who live or work nearby, the child's doctor, and an immunization record.
Allergies with the reaction and what to do, ongoing conditions, regular medicines and diet.
Routines: feeding, how the child falls asleep, diapering or toilet words, what calms them. These details make the first weeks easier for everyone.
Permissions for emergency care, walks, water play and photos, each with its own yes or no.

Add a parent handbook for the policies that do not fit in a contract (illness exclusions, safe sleep, biting, emergencies, what to bring), and keep sign-in sheets, daily reports, incident reports and medication logs from day one. Your licensing agency may require some of these; check which.

Nanny and babysitting contracts are different

A nanny who works in the family's home on the family's schedule is usually the family's household employee, not a business. A nanny contract sets guaranteed hours (paid even if the family does not need them all), a gross hourly rate, overtime, paid time off, payroll taxes, driving and house rules. Example: 45 guaranteed hours at $22 an hour is 40 × $22 = $880 plus 5 overtime hours × $33 = $165, so $1,045 gross a week. Check your state's minimum wage and overtime rules and the IRS household employer rules.

A babysitting contract is shorter: hourly rate, minimum booking, late-night rate, cancellations, how the sitter gets home, and house rules, plus an information sheet for each night.

Mistakes to avoid

Charging by attendance: "$55 a day" invites families to pay only for days used. Charge for the space.
Vague fees: "a late fee may be charged" is not a policy. Write $1 a minute, or $15 per 15 minutes, and when it is due.
No closure list: families plan around your holidays and vacation. Give them the dates on day one.
Copying rules from another state: ratios, illness exclusions and medication rules come from your licensing agency, not a template.
Contract and handbook saying different things: keep the numbers identical, and say which one controls.
One signature: get both parents to sign where you can.

Where the contract fits

The contract works best as part of a simple routine: the handbook at the tour, the contract, enrollment application and permissions when a family accepts a space, sign-in sheets and daily reports every day, a receipt for every payment and a year-end statement for each family in January. Our Home Daycare & Child Care Forms Pack includes a 15-clause child care agreement with a fee and closure schedule, a 4-page enrollment application, a 9-page parent handbook, medication, permission, daily report, incident and attendance forms, tuition receipts with a worked year-end statement, and separate nanny and babysitting agreements, in Word and PDF.

Frequently asked questions

Do I need a contract for a home daycare?

It is the clearest way to agree on tuition, fees, closures and notice before they become a dispute, and many licensing agencies expect written policies. Keep it short and in plain English so parents read it, and check your state's licensing rules for anything they require.

Should parents pay when their child is sick or on vacation?

Most providers charge for the space, so tuition is due when a child is sick. Many allow one family-vacation week a year at no charge or half tuition, with notice. Whatever you choose, write it in the contract.

How much should a daycare charge for late pick-up?

A common choice is $1 per minute after the contracted pick-up time, due with the next payment. Some providers allow one or two late pick-ups a month without a fee. Set a number you will enforce.

What goes on a daycare enrollment form?

Child and parent details, custody orders, authorized pick-ups, emergency contacts, doctor, immunizations, allergies, medical conditions, routines and permissions, with parent signatures. Update it every year or when anything changes.

Do I need to give parents a year-end tax statement?

Parents who claim a child care tax credit or use a dependent care account usually need your name, address, taxpayer ID and the amount they paid. A year-end statement gives them all of it at once. Some will ask you to fill in IRS Form W-10. Check current IRS rules.

This guide is general information for US small businesses, not legal advice. Rules vary by state and city; have a local attorney review contracts and notices before use.