Last updated 2026-07-09
TL;DR
Every daycare, home or center, needs a signed enrollment contract before a child's first day. That contract should cover tuition rates, payment terms, late fees, termination notice, pickup authorization, and health policies. Most states require certain disclosures in writing. Free templates exist, but have an attorney or your licensor review one before you use it.
Why does a daycare contract matter so much?
A daycare contract is a legally binding agreement between you and the family. It does three things at once: it sets payment expectations so nobody is surprised, it documents the family's consent to your policies, and it gives you a paper trail when something goes sideways.
Without a signed contract, you have almost no legal recourse when a family stops paying or pulls their child with no notice. Small claims judges want to see a signed document. So does your liability insurer. So does the state licensing investigator when a complaint lands on their desk.
There's a practical side too. Child Care Aware of America's 2023 Price of Care report found that average annual center-based infant care runs past $15,000 in most states, and home daycare rates trail closely in many markets [1]. A handshake deal at those dollar amounts is a real financial risk. A one-page contract can protect thousands in revenue.
Contracts also signal that you run a real business. Parents spending $1,000 or more a month expect paperwork. Skip it, and they start wondering what else you run loosely.
See our full breakdown of daycare cost to understand the rate ranges families expect your contract to reflect.
What does a daycare enrollment contract need to include?
Not every state spells out exactly what a contract must say, but several require written disclosures before enrollment. California, Texas, New York, and Illinois all require licensed providers to give families a written statement of policies covering fees, refunds, and termination [2]. Even where it isn't mandated, a thorough contract is your best protection.
Here are the sections every enrollment contract should have:
Basic enrollment information. Child's full name, date of birth, start date, and the program's licensed capacity and license number. Including your license number is required in several states and reads as a trust signal to families.
Care schedule and hours. Specific days and hours the child is enrolled. Be precise. "Monday through Friday, 7:00 a.m. to 5:30 p.m." is enforceable. "Full time" is not.
Tuition and fees. Weekly or monthly rate, due date, accepted payment methods, and what happens when payment is late. Spell out the late fee as a dollar amount or percentage, and state how many days of nonpayment end care.
Registration and supply fees. List one-time or annual fees separately and mark them nonrefundable if that's your policy.
Absence and vacation policy. Most contracts state that tuition is owed regardless of absences because you're holding the spot. Specify how many vacation weeks (if any) you give families at reduced or no charge, and how much notice they need to claim them.
Holiday and closure schedule. List your paid holidays. If you close and the family still pays, say so. If you close and they don't pay, say that too.
Termination notice requirements. Two weeks written notice is common. Some providers require four weeks or one full billing period. State what happens when a family leaves without notice, and whether you can terminate with or without cause and on what notice.
Late pickup policy. Define what counts as late pickup and the fee (often $1 to $5 per minute after a defined grace period). This clause isn't mean. It protects your evening and creates accountability.
Authorization for emergency medical care. State that you'll seek emergency treatment when a child needs it and the parent can't be reached. This is separate from your medical consent form but should be referenced here.
Photo and social media policy. If you post photos of children to a private parent app or social media, you need written consent. If you never post photos, say that too.
Signature block. Both parents or guardians who share legal custody should sign if you can get them. Date every signature.
Which forms does every daycare need beyond the main contract?
The enrollment contract is the spine of your paperwork, but it doesn't stand alone. Regulators in most states require additional forms before a child can attend. Here's the full set:
| Form | Typically required by state? | What it does |
|---|---|---|
| Enrollment contract / parent agreement | Yes, in most states | Sets financial and policy terms |
| Emergency contact form | Yes, universally | Lists who to call and in what order |
| Authorized pickup list | Yes, universally | Names every adult allowed to take the child |
| Immunization record | Yes, universally | Documents vaccine status |
| Medical / physical exam form | Yes, most states | Confirms child cleared for group care |
| Medication authorization | Yes, most states | Grants permission to give specific meds |
| Allergy and health history form | Yes, most states | Documents conditions staff must know |
| Photo / video release | Varies | Allows or prohibits use of child's image |
| Field trip / transportation consent | Yes, if applicable | Covers off-site activities |
| Subsidy / CCDF enrollment form | Only if accepting subsidies | Required for Child Care and Development Fund payments [3] |
| Sunscreen / topical application form | Varies | Some states classify sunscreen as OTC medication |
Your state licensing agency publishes the required forms list. In Texas, minimum documentation rules are in 26 Texas Administrative Code Chapter 746 for centers and Chapter 747 for homes [2]. California's requirements are in Title 22 of the California Code of Regulations, Division 12 [4]. Look up your state's licensing handbook before you design your packet. Downloading a free template and skipping this step is how providers get cited on inspection.
Home providers feel this most. The line between personal and professional records gets blurry fast. A clean forms system keeps you calm when a licensor shows up unannounced.
What do CCDF subsidy rules require in your paperwork?
If you accept Child Care and Development Fund subsidies, which pay for care for more than one million low-income children a year [8], your contract and forms have to meet federal and state subsidy office rules on top of licensing rules.
The federal CCDF regulations at 45 CFR Part 98 require subsidized providers to have a written agreement with the lead agency or its designee, and those agreements cover attendance tracking, payment rates, and copayment collection from families [3]. Most states run this through a provider agreement you sign with the Child Care Resource and Referral agency or the state subsidy office.
On the family side, CCDF rules require a parent to be working, in school, or in job training for the child to qualify. You'll collect documentation that confirms eligibility. Your subsidy office tells you exactly which forms they accept, but plan on proof of income and proof of work or school enrollment.
Here's a mistake that sinks good providers: charging a subsidized family less than their copayment, or waiving it entirely as a favor. Federal CCDF regulations prohibit this, and it can trigger fraud findings and repayment demands [3]. New to subsidies? Our piece on minnesota daycare fraud shows how fast a well-meaning error turns into a formal investigation.
Keep signed attendance sheets for every subsidized child. Most states require you to hold them three to five years, and they're your first line of defense in an audit.
Where can you get free daycare contract forms and templates?
Free templates are everywhere online. Some are decent starting points. None should go straight into use without a check against your state's current requirements.
The most reliable free sources:
Your state licensing agency. Many state child care licensing offices publish sample forms or minimum-content checklists. Oregon, Minnesota, and Colorado, among others, post sample parent agreements on their licensing pages. Start here before anywhere else.
Child Care Resource and Referral agencies. Your local CCR&R (find yours through Child Care Aware of America at childcareaware.org) often has provider toolkits with contract templates reviewed for state compliance [5].
National Association for Family Child Care (NAFCC). NAFCC publishes resources for home providers, including contract guidance written by people who actually understand licensing rather than generic small-business forms [7].
Your professional association. The National Association for the Education of Young Children (NAEYC) and its state affiliates sometimes offer member-only form templates [9].
Free printable daycare contracts from general legal template sites (LegalZoom, Rocket Lawyer, and the like) beat nothing, but they're rarely written with child care law in mind. They miss required disclosures, use vague payment language, and ignore your state's termination notice rules.
The ChildCareComp compliance toolkit includes state-specific contract checklists that map required clauses to actual licensing citations. That's a faster way to verify a template than reading the full regulatory text yourself.
Whatever template you start with, have a family law or small business attorney in your state read it once. A one-hour attorney review runs $150 to $400 in most markets. Your contract governs thousands of dollars per family. That's money well spent.
How should you handle late payment, bounced checks, and nonpayment in your contract?
Payment problems are the number one reason daycare providers call an attorney or close their doors. A solid contract won't stop every problem, but it gives you legal standing when one hits.
Write your late fee as a flat dollar amount per day or a percentage. "$10 per day for each day tuition is unpaid after the due date" is enforceable. "Late fees may apply" is not. State the grace period clearly. Three to five days is common before the clock starts.
For returned checks, charge a fee equal to your actual bank charge plus a reasonable handling amount. $25 to $35 is typical. After one bounced check, you can require cash, money order, or electronic transfer only. Put that in your contract.
For extended nonpayment, define the trigger for suspension of care and the trigger for termination. Many providers suspend after seven days of nonpayment and terminate after fourteen. Some move faster. Whatever you pick, write it down and follow it every single time. Enforcing your own contract inconsistently is a discrimination liability.
Small claims court is your friend for collecting unpaid balances. In most states the limit is $5,000 to $10,000, which covers most childcare debts. Bring the signed contract, your invoices, and records of your collection attempts. Courts routinely side with providers who show up with clean documentation.
Never let a family run more than two weeks behind without written notice. Send it by email (that keeps a timestamp) and follow up with a text. Document every exchange. When you eventually stand in front of a judge, that paper trail is everything.
Check your home daycare insurance and daycare liability insurance policies too. Some policies require a written agreement with families. See whether your insurer wants a signed contract in place before coverage applies to an incident.
What should your termination and withdrawal policy say?
Termination clauses are where most free templates fall apart. They're vague mutual-notice requirements that leave providers exposed.
Your contract needs two termination tracks: voluntary withdrawal by the family, and involuntary termination by you.
For family withdrawal, require written notice of at least two weeks, and state clearly that tuition is owed through the notice period whether or not the child attends. This protects the revenue you lose when a family gives Friday-afternoon notice and the child never comes back.
For provider-initiated termination, you need the power to end care immediately in specific situations: nonpayment, a child's behavior that puts others at risk, parent behavior that's threatening or disruptive to your program, and failure to keep immunization records current. You also want the right to terminate on two to four weeks notice without cause. That protects you when a family situation becomes unworkable even without a single clear policy violation.
Some providers add a re-enrollment fee if a family leaves and wants back in. Reasonable. Put it in the contract.
Spell out the refund policy on any deposit you hold. If you keep a two-week deposit and apply it to the final two weeks when proper notice is given, say so. If the deposit is forfeited when a family bolts without notice, say that too.
For part time daycare families, be extra precise about what "notice" means. Part-time arrangements are more financially fragile, and the termination language has to match the specific schedule and rate.
Do you need separate forms for medications, allergies, and health emergencies?
Yes. Keeping health information on the enrollment form is a common mistake that creates compliance problems.
Most state licensing agencies require a separate, standalone authorization form for any medication given at your program. That covers prescription drugs, over-the-counter medications, and in many states, topical applications like sunscreen and diaper cream [2][4]. The form should name the specific medication, the dose, the frequency, the route (oral, topical), the start and end dates, and a parent signature with the date.
For children with allergies, a separate allergy action plan is best practice and required in some states for known severe allergies. It should describe the allergen, the symptoms to watch for, the response steps (including whether and when to use an epinephrine auto-injector), and emergency contacts including the child's physician.
For general health emergencies, your enrollment packet needs a form granting you permission to call 911 and consent to emergency treatment when the parent can't be reached. Some states combine this with the emergency contact form. Others require it standalone.
Store health forms apart from financial forms, both for privacy and because inspectors may ask to see them without touching your financial records. A color-coded folder system per child works fine for a home daycare. Centers often use digital platforms, but paper backup is still standard during inspections.
Review every child's health forms once a year and whenever a medical situation changes. A form signed two years ago may not reflect a new allergy or a changed prescription.
How do you handle contracts for drop-in, part-time, and unusual care arrangements?
Standard enrollment contracts assume a recurring weekly schedule. Drop-in care and irregular schedules need different language.
For drop-in care, use a master agreement signed once that sets your policies, rates, cancellation rules, and liability terms. Then confirm each specific visit in writing, even a text saying "Confirmed: Tuesday 9 a.m. to 2 p.m. at $X." That gives you a record for billing and a paper trail if anyone ever disputes pickup time or payment.
For part-time families on fixed but reduced schedules, be explicit about which days are contracted. A child enrolled Monday, Wednesday, Friday has a contract for those three days. If the parent asks you to take the child on Thursday, that's an extra day at your current rate (or a different rate if you choose). The contract should say so plainly.
For school-age children who need before and after school care during the school year but full-time care in summer, many providers write two separate agreements, or one agreement with an addendum for the summer rate change. Either works. What doesn't work is a single ambiguous contract the family reads one way and you read another when summer arrives.
Nanny-share arrangements, where two families share one in-home provider, need contracts with both families and ideally a three-party agreement covering what happens if one family withdraws. This one is tangled enough that attorney review earns its cost.
How long should you keep daycare forms and records?
Retention rules vary by state and record type, but the general rule is longer than you think you need.
Enrollment records and contracts: most states require retention for at least one to two years after a child leaves your program. Some require three [2][4]. Because personal injury claims tied to childhood incidents can sometimes be filed years later depending on the minor's age, many attorneys suggest keeping enrollment records until the child turns eighteen plus your state's statute of limitations for personal injury.
Medication authorization forms: most states want one to three years of retention after the authorization expires.
Incident and injury reports: three years minimum is standard, longer if the injury was serious.
Attendance records for subsidized children: your subsidy office sets the number. Three to five years is typical at the federal CCDF level [3].
Financial records for taxes: the IRS recommends keeping business records at least three years from the date you file the return, or two years from the date you paid the tax, whichever is later [6]. If you claim the home office deduction or depreciate property, keep those records longer.
Go digital if you can. A scanned PDF in a cloud folder takes no shelf space and searches instantly. Just password-protect your storage. Health records carry privacy weight even where HIPAA doesn't technically apply to most family child care providers.
What are the most common contract mistakes daycare providers make?
These are the errors that surface most often in licensing complaints, small claims cases, and provider-support forums.
Vague payment terms. "Tuition is due weekly" with no specific day, grace period, or late fee is nearly unenforceable. Families read vague language in their own favor. Courts often do too.
No signature from the second parent. If two parents share legal custody and only one signed, the other can argue they're not bound. This bites hardest in termination disputes and nonpayment cases.
Updating policies without updating the contract. You raise rates in January but forget to get a signed amendment. Now you're chasing a rate the family never agreed to in writing. Get signatures every time terms change.
Treating the contract as a one-time formality. Some providers sign at enrollment and never look again. Review your contract every year. Regulations change. Your policies change. Update to match.
Skipping state licensing requirements before grabbing a free template. A free printable contract may be missing a disclosure your state requires. A missing disclosure is worse than a contract dispute. It's a licensing citation.
Ignoring social media and photography. If you use a parent-communication app that shares photos, you need written consent. Parents who find out after the fact create serious friction.
No field trip or transportation section. Take children off your premises, even to a park down the street, and you need signed transportation and off-site consent. Some states require it as a separate document.
A clean forms system also makes your licensing inspection smoother. Inspectors move faster through organized files, and organized files signal a tight program. It's easier to keep a clean program when your physical spaces match your paperwork. See our tips on daycare cleaning for how the two connect.
Frequently asked questions
Can I use a free daycare contract form I found online?
You can use it as a starting point, but not unmodified. Free templates from general legal sites rarely include required state-specific disclosures or child care language around medication, pickup authorization, or subsidy documentation. Cross-check any free template against your state licensing handbook before it goes in front of families. A one-hour attorney review is cheap insurance at $150 to $400.
Is a daycare contract legally required?
Many states require licensed providers to have a written parent agreement covering fees, hours, and termination terms. California, Texas, and Illinois are among the states with explicit written agreement requirements in their licensing regulations. Even where it isn't required, a signed contract is essential for collecting unpaid tuition in small claims court and for defending yourself in a licensing complaint.
What's the difference between a daycare contract and a parent handbook?
A contract is a signed legal agreement between you and the family. A parent handbook is an informational document explaining your program's philosophy, schedule, and general policies. Both help, but only the signed contract is enforceable in court. Reference your handbook in the contract and have parents sign a statement that they received and read it. That makes handbook policies more defensible.
How much notice should I require when a family withdraws?
Two weeks written notice is the most common standard for home daycares. Centers often require two to four weeks. Whatever you choose, state that tuition is owed through the notice period regardless of attendance. Require notice in writing (email counts) so you have a timestamp. Verbal notice on a Friday that the child isn't coming back Monday is exactly the scenario your contract should address.
Can I charge a late pickup fee, and how do I handle it in the contract?
Yes, and you should. Late pickup fees are standard practice and fully enforceable when spelled out in a signed contract. Specify the grace period (five minutes after closing is common), the fee per minute ($1 to $5 is typical), and who to call when pickup runs late. Collect at the time of late pickup or add it to the next invoice. Never let fees pile up without acknowledgment.
Do I need separate forms for each child in a family, or can siblings share one contract?
Each child needs their own emergency contact form, health history, immunization record, and medication authorization if applicable. The main enrollment contract and financial agreement can cover multiple siblings on one document as long as each child is named with their own schedule and rate. Health and safety forms should never be shared across children, because each child has unique medical needs.
What should my contract say about photos and social media?
State explicitly whether you photograph or video children and for what purpose: parent communication apps, your own marketing, or not at all. If you use photos for any purpose, require a signed photo release. If parents decline, document that and keep the child's image out of any shared content. Some states treat photo consent as a required disclosure. Check your licensing handbook to be sure.
How do I handle contract changes when I raise my rates?
Issue a written rate increase notice at least 30 days ahead (60 days is better for a big jump), and have families sign an amendment to the original contract or a new contract reflecting the new rate. An email acknowledgment saying they agree to the new rate beats nothing if a signed amendment isn't practical. Never just start charging the new rate without written confirmation.
What forms do I need if I accept CCDF childcare subsidies?
You'll need a signed provider agreement with your state or local lead agency, attendance sheets for every subsidized child, documentation of the family's copayment and your collection of it, and the family's eligibility documentation. Federal CCDF rules at 45 CFR Part 98 require attendance tracking and prohibit waiving required family copayments. Your subsidy office gives you their required forms, but your enrollment contract should also reference the subsidy arrangement.
Does my contract need to cover what happens when I'm sick or closed for emergencies?
Yes. State your policy for unplanned closures: do families pay for missed days, get a credit, or get a makeup day? For home daycares especially, a sick-day policy is essential. If you close and can't care for children, families need to know whether they're owed a refund. Most home providers don't refund for provider illness but do offer a makeup day. Whatever your policy, write it down and have families sign.
How should I store completed daycare forms and for how long?
Store health forms separately from financial records, either in color-coded folders per child or in a password-protected digital system. Most states require enrollment records for one to three years after the child leaves. For subsidized children, CCDF guidance points to three to five years for attendance records. Keep financial records at least three years for IRS purposes. Injury reports and medication forms should also be kept a minimum of three years.
What happens if a parent refuses to sign my daycare contract?
Don't enroll the child. A verbal agreement isn't enforceable in any meaningful way for a business relationship involving ongoing payments and legal liability. If a parent objects to specific clauses, discuss modifications, but the contract must be signed before care begins. Frame it honestly: the contract protects both of you, and every other family in your program signed the same document.
Can I write my own daycare contract without a lawyer?
You can, and many providers do. Start with a state-reviewed template from your CCR&R or licensing agency, customize it to your program, and cross-check it against your state's licensing regulations. An attorney review once is smart, especially if you add unusual clauses. At minimum, run it by your licensor before use. They can tell you if it's missing required language, though they can't give legal advice.
What's a good way to get families to actually read the contract before signing?
Send it digitally two to three days before the enrollment meeting, not at the meeting itself. Tell them to read it and bring questions. At the meeting, walk through the key sections out loud: payment terms, pickup policy, termination notice. Ask if they have questions before they sign. Families who understand what they signed are far less likely to dispute it later.
Sources
- Child Care Aware of America, 'Price of Care' State Fact Sheets 2023: Average annual cost of center-based infant care exceeds $15,000 in most states
- Texas Health and Human Services, Child Care Licensing: 26 Texas Administrative Code Chapter 746 (centers) and Chapter 747 (homes): Texas licensing regulations specify minimum documentation and written agreement requirements for licensed child care operations
- U.S. Department of Health and Human Services, Office of Child Care: CCDF Final Rule, 45 CFR Part 98: CCDF regulations require provider agreements, attendance tracking, copayment collection, and prohibit waiving family copayments
- California Department of Social Services, Title 22 California Code of Regulations Division 12, Child Care Center Licensing: California Title 22 requires written parent agreements covering fees, policies, and termination terms before enrollment
- Child Care Aware of America, Find Child Care Resource and Referral Agencies: Child Care Resource and Referral agencies provide provider toolkits and contract templates reviewed for state compliance
- IRS, Publication 583: Starting a Business and Keeping Records: IRS recommends keeping business records for at least three years from the date of filing the return or two years from date of tax payment
- National Association for Family Child Care (NAFCC), Provider Resources: NAFCC publishes contract guidance and resources for licensed family child care home providers
- U.S. Department of Health and Human Services, Office of Child Care: CCDF funds childcare for more than one million low-income children annually
- National Association for the Education of Young Children (NAEYC), Program Administration Resources: NAEYC and its state affiliates provide model policy and contract resources for licensed programs