Legally Do You Have To Renew A Contract?

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  • aDCProvider
    Daycare.com Member
    • Jun 2012
    • 116

    Legally Do You Have To Renew A Contract?

    I have a couple families that have signed contracts a little over a year ago. Not much has changed in the last year in the contract and what has has been given out, signed and returned. I didn't intend to renew contracts, but will if I need to.

    Do you have to have parents resign annually to keep the agreement legally binding?
  • CraftyMom
    Daycare.com Member
    • Jan 2014
    • 2285

    #2
    Originally posted by Asmithdaycare
    I have a couple families that have signed contracts a little over a year ago. Not much has changed in the last year in the contract and what has has been given out, signed and returned. I didn't intend to renew contracts, but will if I need to.

    Do you have to have parents resign annually to keep the agreement legally binding?
    Yes. There are other things that are required to be updated annually also in my state.

    Comment

    • Blackcat31
      • Oct 2010
      • 36124

      #3
      I never resign contracts UNLESS something in the contract changes.

      Otherwise, the contract is valid until either party terminates it.

      Comment

      • aDCProvider
        Daycare.com Member
        • Jun 2012
        • 116

        #4
        Originally posted by Blackcat31
        I never resign contracts UNLESS something in the contract changes.

        Otherwise, the contract is valid until either party terminates it.
        Do you change rates for old clients when you do for new clients? This is the only thing that has changed since my families started, my rates have gone up $5/day.

        Comment

        • Blackcat31
          • Oct 2010
          • 36124

          #5
          Originally posted by Asmithdaycare
          Do you change rates for old clients when you do for new clients? This is the only thing that has changed since my families started, my rates have gone up $5/day.
          No, my rates are individual. Each family is charged according to the time/days needed so unless their schedule or care needs change while they are enrolled, I don't change anything, including rates.

          I only keep kids until they start school so I dont have them long.

          I will assign new families my new rate IF the rate has changed. I don't think I've raised my rates in a long time though. I am on the higher end of rates in my area but I still don't think the average has caught up yet.

          Comment

          • EntropyControlSpecialist
            Embracing the chaos.
            • Mar 2012
            • 7466

            #6
            Originally posted by CraftyMom
            Yes. There are other things that are required to be updated annually also in my state.
            Same here.

            Comment

            • Annalee
              Daycare.com Member
              • Jul 2012
              • 5864

              #7
              Originally posted by Asmithdaycare
              I have a couple families that have signed contracts a little over a year ago. Not much has changed in the last year in the contract and what has has been given out, signed and returned. I didn't intend to renew contracts, but will if I need to.

              Do you have to have parents resign annually to keep the agreement legally binding?
              Licensing here requires updated forms annually. Check with your state rules/regs.

              Comment

              • Second Home
                Daycare.com Member
                • Jan 2014
                • 1567

                #8
                The state requires me to update some of their forms anually but not my contract .

                Comment

                • CraftyMom
                  Daycare.com Member
                  • Jan 2014
                  • 2285

                  #9
                  I would check with your state since requirements vary.

                  I don't think it has to be annually, but there does have to be an end date, at least in my state.

                  I recently had to go to small claims court. My contract did not have an end date on it. The judge said it is illegal to have an unending contract. I stated that I don't know the end date since the contract is valid until they leave, and when they sign on I don't know when that will be...could be a few months, could be a few years. What saved me was that in my handbook it states that the contract will be updated annually. I have since done as instructed and added the "updated annually" part directly on the contract. Maybe saying "the contract is valid throughout your child's time here" would be sufficient.

                  Comment

                  • coolconfidentme
                    Daycare.com Member
                    • Oct 2012
                    • 1541

                    #10
                    Originally posted by Blackcat31
                    I never resign contracts UNLESS something in the contract changes.

                    Otherwise, the contract is valid until either party terminates it.
                    This with me too...

                    Comment

                    • Starburst
                      Provider in Training
                      • Jan 2013
                      • 1522

                      #11
                      If nothing significant has changed in your policies/rates or you don't have an expiration date on your contract (and licensing doesn't require it), then I wouldn't bother.

                      Comment

                      • LysesKids
                        Daycare.com Member
                        • May 2014
                        • 2836

                        #12
                        Because I specifically care for infants, my contracts end once a child turns 18 months old… states it in the first paragraph. Of course the line above it states child's name, age at contract signing, and address too. Down further after payments paragraph, my termination paragraph explains what happens should either party want to end the contract before the child ages out.

                        Comment

                        • aDCProvider
                          Daycare.com Member
                          • Jun 2012
                          • 116

                          #13
                          Originally posted by LysesKids
                          Because I specifically care for infants, my contracts end once a child turns 18 months old… states it in the first paragraph. Of course the line above it states child's name, age at contract signing, and address too. Down further after payments paragraph, my termination paragraph explains what happens should either party want to end the contract before the child ages out.
                          How do you offer only infant care? Do you have an assistant to help you? I was considering going only infants and having a full time assistant and 4 infants but charging a higher rate than other daycares in the area because the ratio would be 2:1. In my area rates are $55-$65/day in FCC for an infant. I was thinking of charging $75/day for an infant only program with a low ratio. It's almost like getting a nanny for $8.34/hour when nannies around here make $15-$25/hour.

                          Comment

                          • LysesKids
                            Daycare.com Member
                            • May 2014
                            • 2836

                            #14
                            Originally posted by Asmithdaycare
                            How do you offer only infant care? Its easy, I have only 4 kids, 0-18 month, and have for years
                            Do you have an assistant to help you? NOPE, never have

                            I was considering going only infants and having a full time assistant and 4 infants but charging a higher rate than other daycares in the area because the ratio would be 2:1. In my area rates are $55-$65/day in FCC for an infant. If I was in a slightly different area ( like closer to Knoxville than I am) I could charge more, but most my parents drive 20 minutes out of their way to get to me now, so I keep it reasonable

                            I was thinking of charging $75/day for an infant only program with a low ratio. It's almost like getting a nanny for $8.34/hour when nannies around here make $15-$25/hour.
                            Works some places, others it might not… I started having people copycat me after awhile, so it hurt my business as a niche

                            Comment

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