Parent Pulls 2 Children Before Starting

[Lynch30]

Hi everyone,

My wife started her daycare this week and unfortunately, we've already had an issue with one of the parents. My wife received a call today from a parent who has 2 preschool aged kids who were set to start next week. The parent said that they will not be starting daycare next week because they were able to find a preschool that will accommodate them. They've already paid the deposit and understand that they will not receive that money back, however the question comes up on whether or not we should be entitled to the money for terminating childcare without notice. Technically, their children haven't started daycare yet, however in the contract it states that prior to termination, one month's written notice must be submitted by the parent.

There is some gray area there, so I'm just looking for some advice/opinions on whether or not we should pursue this. If it was just 1 child, we might be able to let it slide, however when 2 children are pulled when we have 8 total attending, that's 1/4 of my wife's salary that will be missed until we can fill those spots.

Thanks for any assistance. This is a great community that we've learned so much from already and we appreciate the feedback.

[spud912]

Hi everyone,

My wife started her daycare this week and unfortunately, we've already had an issue with one of the parents. My wife received a call today from a parent who has 2 preschool aged kids who were set to start next week. The parent said that they will not be starting daycare next week because they were able to find a preschool that will accommodate them. They've already paid the deposit and understand that they will not receive that money back, however the question comes up on whether or not we should be entitled to the money for terminating childcare without notice. Technically, their children haven't started daycare yet, however in the contract it states that prior to termination, one month's written notice must be submitted by the parent.

There is some gray area there, so I'm just looking for some advice/opinions on whether or not we should pursue this. If it was just 1 child, we might be able to let it slide, however when 2 children are pulled when we have 8 total attending, that's 1/4 of my wife's salary that will be missed until we can fill those spots.

Thanks for any assistance. This is a great community that we've learned so much from already and we appreciate the feedback.

I personally would not pursue it. I think that is what the deposit is for, kwim?

[Heidi]

I personally would not pursue it. I think that is what the deposit is for, kwim?

Generally, the deposit is for just such a case. You may want to re-word your contract accordingly.

Although you have said you require 4 weeks notice, and that is certainly reasonable, most providers have some sort of 2-week trial period that is exempt. Also, consider making sure your contract says that YOU may terminate with less than 4 weeks notice under certain conditions, such as extreme behavior on the parent or child's part.

[jenboo]

I wouldn't pursue it. They never started.
Welcome to childcare.... Where your income is never guaranteed
Unfortunately, this is part of the business. Just start advertising again.
I hope you fill the spots quickly!! I think there are a few of us here trying to get spots filled.

[MarinaVanessa]

I wouldn't pursue it either. Typically child care providers offer the first couple of weeks of starting as a trial period (2 weeks for me) where either party can cancel at will with no penalty and because this client hasn't started and because there is nothing in your contract/policies that mentions this I would just call it a learning experience and move on.

What you can do is revise your policies now for the next client. You can also charge a holding fee if the client will not be immediately starting on top of the deposit. Many of us here charge a security deposit equivalent to 2 weeks of care which are applied to the client's final 2 weeks of care when they terminate their contract. This deposit is non-refundable. On top of this deposit many of us charge the weekly non refundable holding fee until the client starts care. This fee is only to pay for holding their spot until they start and does not get applied or credited towards the client's child care fees once they do start. Another thing many of us do is require payment for the first week of care and always require payment in advance of care instead of after.

These are really good ways to help with the financial aspect of this business however what you mention is actually pretty common.

[NightOwl]

I wouldn't pursue either. My deposit is for just such an occasion. Welcome to the forum! Stick around!

[daycare]

add me to the list of don't purse.

as others have stated it is normal to have a two week paid trial. During this time either party can pull without notice.

[midaycare]

Definitely not worth pursuing. I think your wife is pretty lucky if she already has the other 6 slots filled, considering she is just starting! Someone I know who started 18 months ago can't even fill half of her slots.

This stuff happens out of the blue. It's unfortunate, but I would just count on her income being at about 5-6 kids as steady income, and everything else is "extra" money.

[cheerfuldom]

welcome to daycare . you will never have steady, reliable income. just when you think everything is going to work out, parents up and surprise. this is just the beginning. like someone else said, try to plan for half or three-fourths income because there will always be people coming and going, it is the nature of daycare. you have to leave yourself that wiggle room and not assume that all spots will be filled all the time, or even half the time.

[daycarediva]

I too would not at all pursue payment through the notice period, that's what the deposit was for. I'd go so far as to say it's unreasonable to think about requesting it.

[nothingwithoutjoy]

If your notice period is 4 weeks, then your deposit should equal 4 weeks' pay. Then you're covered when people pull without notice.

[Leigh]

If your notice period is 4 weeks, then your deposit should equal 4 weeks' pay. Then you're covered when people pull without notice.

[llpa]

welcome to daycare . you will never have steady, reliable income. just when you think everything is going to work out, parents up and surprise. this is just the beginning. like someone else said, try to plan for half or three-fourths income because there will always be people coming and going, it is the nature of daycare. you have to leave yourself that wiggle room and not assume that all spots will be filled all the time, or even half the time.

Exactly!! Good luck and having six kids to start is awesome!!!!happyface

[KIDZRMYBIZ]

If your notice period is 4 weeks, then your deposit should equal 4 weeks' pay. Then you're covered when people pull without notice.

Yep, this exactly. In my experience, usually clients tell me almost immediately if they are planning on taking kids out of care (due to moving, no room here for new baby, etc.)...unless they are po'd about something! Which is fine, because I collect a deposit at enrollment, too.

Kudos to you for getting your deposits from the get-go. I learned that through the school of hard knocks, and discovered this forum only last year.

The uncertain income and sometimes not being full is the dirty nature of this business. I suggest budgeting life on income from 6 kids, and the extra 2 when filled is "bonus money."

[Blackcat31]

You cant require them to pay for a termination of care notice when there has been no care yet.

A deposit is used to hold a space.

Once the space is occupied, the client is then required to abide by your contract.

Since the care never started, you have no legal claim to anything but the foreited deposit.

Your wife won't be missing 1/4 of her income yet because she hasn't had that income yet either.

Sorry that happened though. Seems to me they were only using your care temporarily anyways and it is better to lose them now before the income started being regular.