Early Termination Fee?

[KEG123]

If you set your contract up to be renewed yearly, or even bi yearly, do you charge a fee if they break the contact early? Say at 4 or 9 months?

[DCMomOf3]

I just require 2 weeks notice, full pay. I don't have a penalty otherwise.

[Live and Learn]

I have never had anybody give notice during the school year. I close for the summer. The year that I raised my rates for existing clients I did lose one family...the family gave notice over summer break so it was no big deal. ( now that my rates are where I want them I would only raise my rates on new dc families.) I give two weeks notice when I term and would expect the same from my dc families if they were to term me!::

[lil angels]

I do my contract yrly and require a 2 week notice.

[Abigail]

I wouldn't recommend doing a yearly contract or any contract that has an expiration date because it might reach the end of the contract (meaning it's expired) and then that family really could just "walk" out without paying any fees because they're not on a contract.

KEG123, I would do a start date upon enrollment and just make sure your termination section is the part just before the parent and provider signatures since termination really does happen at the end of anything. If you just require a two weeks notice like most people do, then they are required to pay for those two weeks whether they attend care or not. This is why it's important to have two weeks prepaid upon enrollment or paid in installments until they've paid for two weeks of care that you hang onto incase they decide to not come to care or communicate because they would forfeit the deposit since it's in the contract.

Besides, daycare shouldn't be like leasing an apartment where you're required for the year to pay. They should pay for child services until daycare is not longer needed with giving a two week notice to advertise to fill the spot. KWIM?

[KEG123]

Thanks!