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You will have tough job making parent commit to staying for a year and even if your contact is for a year, you will have tough job enforcing it. Not like a lease agreement where someone rent for a year and is obligated to pay rent even if they break lease.
Parent have babies in less time that an year and have mat leave. They not always able to pay for day care when Mom not earning. People lose jobs. Client move away.
To have annual contact with intent of re-issue end of year with any policy change or price change is different. But to have yearly contact to force client to stay for year not realistic.
They must have ability to give notice and leave - also you too tied to contact. You might have problem client or child or you might have change in circumstance meaning move or closed. If your contacts such that client have to commit for year with no way out, you too have to commit for same time.
I don't think any parent can promise to remain for year because life changes. I don't think peoples will sign
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Well for the families I have right now they had no problem signing a one year contract. I just had an interview today and the parents wanted to come to my daycare. I also told them they had to sign a one year contract, there was no issue. If I give 2 weeks per year for free vacation and you use up your vacation before your year is up or you leave and break the contract then you don't get your deposit back. So far it has been going perfect and I am happy with my decision :)