For Those That Require A Holding Fee

[DancingQueen]

for baby siblings..


I have an almost 2 year old that I've been watching since July.

She just became a big sister.
Baby is coming 5/2
family has been paying a holding fee for the spot of $40.00 per week.


What if I decided to stop doing daycare before the baby comes? Would 100% of it need to go back to the family?

What if I took baby as planned and kept doing daycare
but 6 months down the road I decided to stop doing daycare?

I'm thinking that by the fall of 2012 I am going to go back to work full time. So this isn't something that I predict happening but because I'm thinking about next year now - this sort of poppped in my head and I'm wondering how it would work.

[wdmmom]

Do you have anything in writing?

If you quit before they come...that's a sketchy situation. They are paying a holding fee (which I tell my parents is NON REFUNDABLE), but you are performing the service they paid you for...you are legally holding the spot. You have the opportunity to get someone else in there and may alot more than $40 a week. But if you were to quit providing daycare, yes, I think a refund is required.

If you cancel services 6 months after, no, I don't think a refund is necessary.

[DancingQueen]

this is what their contract states.

By signing this contract, you agree to pay $40.00 per week to hold the spot in my daycare for your newborn. This agreement is in effect 1/3/11 – through first day of care which is currently planned for 5/2/11. At which time a new contract will be signed effective 5/2/11 – 12/31/11. This $40.00 per week fee is being paid to hold your child’s spot and is non-refundable and will not be applied to any future care.

[Abigail]

If you might close in fall of 2012, that is over a year away. If you know you're going to close this summer or something that is different. It would eat away at me if I knew I was going to close soon and still take a holding fee. I wouldn't change the contract to include they could be refunded or not refunded if you close your doors because that is bringing in a whole new can of worms. I would be obligated to end the contract and refund it you're closing and this was recently signed. I would not refund if you had the child in your care for six months then closed your doors.

[JenNJ]

I wouldn't take a holding fee if I didn't plan to be open by 5/2! That is STEALING. So yes, 100% would need to go back to the family and you need to tell them ASAP that you will be closing so they can find spots for both kids. Around here infant care is HARD to find.

2012 -- keep the holding fee. That is over 1.5 years away.

[daycare]

I would have never signed that agreement. It only stated that you would hold a spot. It did not say what would happen if you failed to have the spot open when needed????

Anyone who signed this contract that would not guarantee both their money and a spot is crazy....

Sorry not trying to sound rude, but that’s the families fault for signing that.

[DBug]

I would have never signed that agreement. It only stated that you would hold a spot. It did not say what would happen if you failed to have the spot open when needed????

Anyone who signed this contract that would not guarantee both their money and a spot is crazy....

Sorry not trying to sound rude, but that’s the families fault for signing that.

How should she have worded it? DancingQueen's contract is very similar to the way I worded mine, and I have written in that the holding fee is non-refundable as well. I figured that would cover any unforeseen reason for not holding the spot (which in my case would be closing the daycare).

The way I see it, we're giving up full-time pay in the present to hold the spot for a future date -- shouldn't that eliminate the need for a refund, since we're already losing money?

[Meeko]

How should she have worded it? DancingQueen's contract is very similar to the way I worded mine, and I have written in that the holding fee is non-refundable as well. I figured that would cover any unforeseen reason for not holding the spot (which in my case would be closing the daycare).

The way I see it, we're giving up full-time pay in the present to hold the spot for a future date -- shouldn't that eliminate the need for a refund, since we're already losing money?

I agree. They are asking you to not take another child. To not get income from another child. They replaced some of that income to hold a place.

BUT.........now you know you are going to close...you need to let them know asap and not charge them any more. You DID provide them a service. For $40 you held open a place for them and that has to be paid for.....so no refund.

[daycare]

I_______________________, hereby agree that this deposit of _____ is to hold a spot for my child at ________ Daycare, owned and operated by_____. Should a situation occur and I will no longer need care for my child, I must notify ________Daycare before or on: Thursday, September 9, 2010 by 5:00 PM to receive my deposit back. After said date has passed, I understand that the deposit is completely non-refundable under any circumstances.
I also understand that ________ Daycare will be turning away business between the below dates to secure my child’s spot.
_______________ Daycare agrees to hold an opening for my child from September 6, 2010 until the end of the business day on ,September 13, 2010, which will be the start date for my child at__________ daycaere. Fees will start to occur for the cost of care from this date forward. Should an incident occur out of the ordinary and your spot is NOT available to your family as stated above, you will be notified in writing within 10 days prior to your start date and will receive a full refund of all money paid.

[kendallina]

I would have never signed that agreement. It only stated that you would hold a spot. It did not say what would happen if you failed to have the spot open when needed????

Anyone who signed this contract that would not guarantee both their money and a spot is crazy....

Sorry not trying to sound rude, but that’s the families fault for signing that.

This family is not crazy for signing a contract! They trust the provider and it probably never entered their mind that she may stop providing care between now and then. I think if you decide to stop doing childcare, you should pay the family back their holding fee. Sure, you did technically hold their spot, but if you never accept them as clients, then the right thing to do would be to refund the money. If you provide care for 6 months or 18 months then I don't think you'd owe them the money back.

[DCMomOf3]

I_______________________, hereby agree that this deposit of _____ is to hold a spot for my child at ________ Daycare, owned and operated by_____. Should a situation occur and I will no longer need care for my child, I must notify ________Daycare before or on: Thursday, September 9, 2010 by 5:00 PM to receive my deposit back. After said date has passed, I understand that the deposit is completely non-refundable under any circumstances.
I also understand that ________ Daycare will be turning away business between the below dates to secure my child’s spot.
_______________ Daycare agrees to hold an opening for my child from September 6, 2010 until the end of the business day on ,September 13, 2010, which will be the start date for my child at__________ daycaere. Fees will start to occur for the cost of care from this date forward. Should an incident occur out of the ordinary and your spot is NOT available to your family as stated above, you will be notified in writing within 10 days prior to your start date and will receive a full refund of all money paid.

This family is not crazy for signing a contract! They trust the provider and it probably never entered their mind that she may stop providing care between now and then. I think if you decide to stop doing childcare, you should pay the family back their holding fee. Sure, you did technically hold their spot, but if you never accept them as clients, then the right thing to do would be to refund the money. If you provide care for 6 months or 18 months then I don't think you'd owe them the money back.

I agree with these.

[missy1_]

wondering what to do!

I paid my non-refundable deposit to hold a spot for my son to start child care in oct. I just recieved a call from the daycare provider saying that I now have to take the spot on July 1st or My son looses his spot for oct..... are they allowed to do that???