Wanting to change contract - WWYD?

When I started providing home daycare last year, I told the parents that I would only be taking on three kids at once. I have since realized that I am more than capable of adding another one to our group, and just recently decided to do so.

Problem is, I used my small caregiver-child ratio in my contract. So, I asked the parents' permission to take on another full time child. This would give me three days per week with three kids, and only two days per week with four, as two of my dck's are part time. One of my parents said no. I feel SO let down. I was counting the extra money already.

I at the end of March, I will have one full timer, one who is 2 days a week, and one who is min 14 days a month, but sometimes more, and with crazy shifting days. I can't schedule around the 14 day a monther, because his needs are always changing. The daycare child I am losing had a work at home mom, so she was willing to take whichever two days I gave her. There is really a snowball's chance in hell that I'll be able to replace her.

So....my question is what would YOU do? The contracts are all up in June. Should I change it knowing that it will displease my full timer? Should I just suck it up and lose the extra money? I am at a loss. Literally.

Hmmm that's a really tough one. Although I'm not sure I would like that kind of attitude from my clients. To just say "no". Sounds kind of unfair. You clearly would not do this if you didn't think you could so does this mean they do not trust your judgement? We could all use the extra money, it's not like this is a super lucrative business. But if you can't fill that space... then you lose money there too right?

I can totally fill the full time space. My area has a serious lack of childcare. We are pretty attached to the dck. She's sincerely the perfect child. We've had her since July, and her parents always pick up and drop off when they say they will and pay on time every week. They're pleasant and hassle free. I wonder if I should really do that to them...

I will be surprised if she doesn't bring it up when she picks up dck tonight. Maybe we can have a dialogue then. They are very nervous parents, and she said they "aren't comfortable" with me taking on another. She mentioned that one of the reasons why they have such peace of mind with me is because I never have more than three at once. What a situation I've got myself into here.

I don't know if I would let the parent's call the shots. This is your day home and therefore the decision ultimately lies with you. If I were you I would think on it. If you decide to take on the other child then I would change the contract and should they not wish to sign it then I guess they will be looking for another day home. To be honest I agree with the above poster in that I don't really like the parent's attitude either. I would not leave the decision up to them. If its worth it to get another family and perhaps loose this one only you can decide that. You never know you might get a really awesome family out of this. Hope it works out for you whatever you decide!

I'm with bugaboo. It's YOUR business, you call the shots. I wouldn't let parents dictate what I can do! Will they really notice that you have more than the 3 there 2 days/week? I bet they wouldn't! Just do it!

Do you have a clause in your manual/contract stating that you can change anything if you deem necessary? If you need something like that, PM me, I have one.

Ok, you guys bring up good points, but to be honest, I was expecting other providers to say that a contract's a contract.

So what does this mean for me? For them? Does it mean my contract can be changed any time I want it to change? The parents are locked in, but I am able to bend the rules to which we both agreed whenever I feel like it? Not being snotty, just playing devil's advocate.

I think when your contract comes up for renewal or re-signing whatever you want to call it you are perfectly with your rights to make changes at that time. Most contracts I have seen (and signed) have a clause that says something to the effect of "terms and conditions are subject to change at any time without prior notice".
I don't think its a shady business practice to change the terms of how you run your business. It happens!

I would be sending out an ammendment to the contract that says as of whatever date the daycare ratio will be subject to what is acceptable by the Ontario Day Nurseries Act of one caregiver to five daycare children not including her own children and even quote the passage directly if you wanted to. Let's them all know that you have every right to do this. Then include a form for them to sign, date and return that says they agree. And if not that you will take that as their two week/4 week notice - I would be giving them plenty of time since it is you changing what they thought they had signed on for but it is your business and if they leave their choice.

Another option is to change the fee schedule - those that expect a caregiver to take only a small ratio are usually expected to pay extra per day as compensation.

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Originally Posted by Alphaghetti

Ok, you guys bring up good points, but to be honest, I was expecting other providers to say that a contract's a contract.

So what does this mean for me? For them? Does it mean my contract can be changed any time I want it to change? The parents are locked in, but I am able to bend the rules to which we both agreed whenever I feel like it? Not being snotty, just playing devil's advocate.

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I have it stated in my contract that "The terms of the contract are subject to changes at any time. Should changes be made you will be given the opportunity to review and agree to the new terms."

You should never give control to a parent as to how to run your business. It's not up to them to tell you how many kids you can handle. I would take that right out of your contract, revie anything you want to make changes to and get parents to sign. If they don't want to sign it then that is them giving you their notice and you fill their spot with another family to your standards.

My contract says 4 weeks notice to change or terminate the contract.

Your other option is to take on the other child and then let them give notice for breach of contract and leave. It still leaves you with the new child and able to replace. No different than if we give them notice for not fullfilling the terms of the contract . Once you don't adhere to something in it then the contract can be nullified.

I say take the new child on and put the ball in their court. They may stick it out for a bit to see how things go or they may get into a huff and move on. I would still send out the memo saying you intend to expand your daycare to include up to 5 children so they have some warning.

If your contract says 3 kids, I think they have a right to refuse. And I don't agree with the others that you are entitled to change these terms, unless it is clearly stated in your contract that you can do so.

I personnally suggest that you take that off your contract for next time (at renewal) and explain to the parents that you are entitled in Ontario to have 3, and now feel that you could easily manage. Give them some confidence, they just seem anxious! You could also tell them that you financially need the extra money (without going in deeper explanation as this is not their business).

If they are too stubborn, tell them right away that you will fulfill your end of the contract but will change this clause at renewal, if you renew with them now knowing how they don't have confidence in you and they don't respect you as a person either!

Sarah

Okay, a couple points....
My contract stipulates that I can make amendments with 30 days notice. As in; if you are not accepting of the changes, you can give your notice in that time. I don't think that's unfair, as it goes both ways. If the parents change their situation/arrangement, etc, they give me the same notice.
I know it's too late now, but I don't think I would have "asked" the parents. I may have floated the suggestion, to see what they think/feel. But it's ultimately my (your!) decision, not theirs.
Anyway, if you feel like there is no reason for you NOT to take on a child, you need to discuss this with them. Find out what exactly makes them uncomfortable. Perhaps they don't realize the schedules, in that you won't have all the kids, all the time.
Ultimately, they can't DISALLOW you.... but they can leave, for breach of agreement, if they get right pissy. So, if they are still against it; you need to decide what means more to you. That family, or adding some more income?

Terms of contracts are changed all the time in business. But what it means is when one party wants to change the terms the other party has the right to walk away from the contract without penaltly. So let all families know in writing that now that you have had a chance to develop your routines and settle into your new career that you are going to allow 5 daycare children to attend your program and as of whatever date will begin advertising to fill the spaces. Then go into how it is legal and the norm. You could also put in something that rather than raise daily fees to cover the loss of income you are going to bring your program up to the provincial standard for numbers and leave it at that.

If their contracts are up in June I would advertise NOW for the spots of the families who said "NO" and the additional kids you want to take on. Fill those spots to start in June and then don't renew the contracts.

We have the RIGHT to change our business model. No business in the world remains the same with NO change throughout its existence. GOOD businesses DO change as the needs of the public or the market segment or the owner change.

Thank you all so much. What you say makes perfect sense. I will advertise now for June. I really hope they don't leave, but if they do, I guess I'll just have to realize that it's possible to find great families other than them.

I also started out a year ago and thought I would take 3 maximum, but I did not put that in my contract or advertise as a low-ratio daycare, so when I decided to take a fourth, I just told the parents we would have a new friend joining us and that was it...nobody said a word. However, in your case it is trickier, so I agree with the others who have suggested having the new child start in June and changing your contract then. I give out new contracts every year too and I made a few changes to them in January...nobody left (although they were not major changes). Good luck! By the way, I wouldn't tell them it's because you need the money...that makes it seem like you are piling on the kids to fill your wallet...we all need more money...that is why we do this business, but I just wouldn't mention it like that.

Holy crap!! I just went through my contract...it says NOTHING about three kids in it! I write that on my ads, but I thought it was in my contract too. So.

Now? Four weeks notice? What do you think?

I am reading this and I was all ready to say something about taking on more kids and now you threw that monkey wrench in there and I am at a loss :S

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Originally Posted by Alphaghetti

Holy crap!! I just went through my contract...it says NOTHING about three kids in it! I write that on my ads, but I thought it was in my contract too. So.

Now? Four weeks notice? What do you think?

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I only give 2 weeks notice.

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Originally Posted by gingerbread11

I am reading this and I was all ready to say something about taking on more kids and now you threw that monkey wrench in there and I am at a loss :S

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What monkey wrench?

Well, if it's not in your contract, it's not a change of contract, so technically there is no notice to be given. However, then you still have a problem in that it could be called false advertising if you wrote it in your adds to attract clients. I'm not really sure what to suggest because if I were a parent who had signed on with you because of the low number of kids that you promised, I would not be happy if you now changed that. However, as Judy said, businesses change and they can leave if they are no longer happy...we get notices about rate increases, changes to service etc on our cables bills and whatnot...if we don't like it, we take our business elsewhere. You could give them 4 weeks notice and try to work with the family who is against it to help them see the positives and to get them to at least give it a try.

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Originally Posted by Alphaghetti

Holy crap!! I just went through my contract...it says NOTHING about three kids in it! I write that on my ads, but I thought it was in my contract too. So.

Now? Four weeks notice? What do you think?

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I know that many people would do a 2 week notice but I personally think 3/4 weeks is better in this situation. I don't like burning bridges or 'bad karma'. That gives them enough time to find a replacement.

I agree 4 weeks is probably fair

Do you actually want to give notice as such or just give them the written notice that you have started advertising to fill the other two spaces in your daycare to bring you up to provincial standard. Then leave it up to them to agree or leave. On the other hand you risk them agreeing and then secretly be looking elsewhere only to leave after you thought all spaces were filled.

It does seem like no matter what they are not going to be happy and by them already saying no and you in effect saying too bad I can do what I want which you can so do not feel guilty for that it probably is better that they just go.

I would give them plenty of time to find alternate care but not so much it holds you up from advertising. Better to know that as of whatever date.

Yup, I would just give them a written letter informing them that you have decided to fill your remaining spaces as per the government standard and go from there. If they say something about it (not liking it or that they said no) I would then hand them a termination letter stating that you no longer can meet the child's needs. I would also tell them that you asking them about it was strictly courtesy and it is your business and businesses change for the owners best interest.

How would you word it? I am trying to draft something up, and it keeps sounding rude somehow...

How is this?

Dear Parents,

As you all know, this is my first year in operation as a full time day care provider to more than one child. As with any business, the first year is a learning experience. I have learned a lot this year. When I interviewed with some of you, I gave information that I would only be taking on three children. In the past months, I have realized that I am more than capable of comfortably handling more than that. I know that for some of you, this was a selling point. The Ontario Day Nurseries Act dictates that any one home child care provider is entitled to care for up to five children at a time, not including their own. My children have reached a point where they require very little hands on care from me during my operating hours. Having said this, I already know that some of you are not comfortable with my taking on another child, but as with any business, terms and conditions change, leaving clients and business owners with the option of changing with these modifications, or moving on and finding a more suitable arrangement for them. I thought until today that the three child stipulation was part of my contract, but have gone through it with a fine toothed comb and found that there is no such stipulation in writing. Had I put it in writing, please know that I was prepared to honour my contract until one year from the sign on date.

I do hope that I can keep all of my current clients. Your children are of great importance to my family and we have true affection for every one of them. I further hope that you can understand that you must have faith and trust in me, as I am caring for your children. I would never put any of your children in harm's way, and if I thought for a moment that I was unequipped to care for four children, I simply would not do it. I now take this opportunity to ask that you please give it a chance before you decide to seek care elsewhere. Your comfort level is valid, but as I have said before, this is my business, and sometimes I must treat it as such, personal feelings and relationships aside.

I will begin to advertise for a fourth child effective immediately. I will, however, not take on a fourth until one calendar month from now, leaving you the option and ample time to find alternate care arrangements should you feel that you need to. I would very much like to move forward with all of my clients in place despite this change to my business, but know that I do understand if my new situation no longer meets your family's needs.

With Sincere Respect, Me

I would shorten Alphaghetti's letter a bit, it's a little wordy and really, you don't have to explain things to anyone. I would also take out any number referring to how many children you're taking in or how many spaces you're filling because it brings you right back to square 1...you only said 4 and now you want 5?...kwim :)

I would shorten it to maybe this...


Dear Parents,

As you all know, this is my first year in operation as a full time day care provider to more than one child. As with any business, the first year is a learning experience and as with any business, terms and conditions change, leaving clients and business owners with the option of changing with these modifications to better either the client or owner. I have learned a lot this year, including that I am more than capable of comfortably handling more than I originally stated. The Ontario Day Nurseries Act dictates that any one home child care provider is entitled to care for up to five children at a time, not including their own. My children have reached a point where they require very little hands on care from me during my operating hours so I feel comfortable taking in more friend's for the children to play with.

I would never put any of your children in harm's way, and if I thought for a moment that I was unequipped to care for more children, I simply would not do it. I will begin to advertise my available spaces effective immediately. I will, however, not take on any other children until one calendar month from now, leaving you the option and ample time to find alternate care arrangements should you feel that you need to. I would very much like to move forward with all of my clients in place despite this change to my business, but know that I do understand if my new situation no longer meets your family's needs.

With Sincere Respect, Me



This is what I would send. It's sweet, to the point with no wiggle room for the parents or needing to explain yourself.

Thanks, fruitloop! :)

just that it was only in you adds thats not actually in your paperwork. But it looks like ya got it all under control:)

I agree that if you 'advertized' your daycare as something even if it is not written in your 'contract' that contracts can be both verbal and written and advertizing is 'part' of that assumed service in the contract - however you have every right to change your business model and in return your clients have the option to either choose to stay and accept new model or to terminate the initial contract and seek alternative service elsewhere!

My hairdresser does not ask me 'permission' to offer new or different services or change her fees nor does the plumber, lawyer, mortgage broker, insurance company, the bank - you get my point ... they offer us a service, sometimes a 'contractual' service same as we do, and they CHANGE them all the time with 'notice' to me as the customer - if I do not LIKE the changes I seek service elsewhere otherwise I suck it up and assume the new contract.

My contracts have no 'end date' they just say that they will be reviewed a minimum of annually and subject to change as needed to ensure viable business model, should a change occur 60 days notices will be given and if a client does not want to 'renew' they are required to give at least two weeks notice to terminate the contract or they would forfeit their security deposit ... I put right in my notice of change that contracts not returned 'signed by X date' will serve as notice to terminate contract and the space will be refilled as of X date (the 61st day since notice of change was given) I have never had a client 'not renew' a contract - if fact they are often resigned on the spot not even 'reflected on' and over my first few years things changed 'frequently' as my learning curve to doing home childcare over 'centre care' evolved and my policies and practices changed in my handbook ;)

I think that your letter is very well written, but I do like the short and sweet version. As fruitloop mentioned, you don't have to explain yourself, or feel like you are justifying.
Good luck, and let us know what happens!!

I completely agree that you should never explain your business decisions. Telling parentst that as you become more experienced you are making changes in your daycare is good enough. Informing the parents with a written letter is a courtesy to them and you are keeping them informed of everything but there is no way on this earth that I would let my clients dictate my business.

If these parents trust us with the most precious things in their lives every day then they must trust that our decisions are sound. I hope this all goes smoothly for you.

As for one (I seem to be the only one) prefer the version of Alphaghetti because it explains her reasons. Personnally, I think we owe our customers great respect and I put myself in her parent's pants, I would love to receive this letter, I would feel respected and understood, and it would also reassure me greatly!

I am not saying you HAVE to explain, I am saying I think this is the humanely thing to do.

I also prefer Alphagetti's version of the letter. It sounds nicer

I would not ASK the parents though about adding another child. The letter is good enough if you feel you have to do something and that the 3 kid rule is why they chose your daycare over another one.

personally I would have verbally just said "good news.....as of march we will have another little guy/girl coming. I think that 'Mary' (their child's name) will really enjoy it. The other group is getting a bit older now and I think the time is right to add someone to our mix."

I didn't ask any parents about addding a new one. I had the same group for over a year and then this January I added an infant and I just told the parents in the newsletter that we would have a new little friend coming and then brought it up in positive context in conversation to the parents. One of the moms seemed a little hesitant (wrinkled brow and nose whenever we talked about it) but now she oohs and ahhhs at the infant just like everyone else and is fine with it. I think she just wanted to know that things were going to continue as is and I would still focus on all the kids.

Just wanted to update in case some of you didn't read on the other thread:

I sent out the email on Wednesday (long version), and one mama got back to me right away saying that she had zero problem with a 4th. I didn't hear back from the one who I knew would have a problem. So, Saturday, I texted her, asking if she received my email. She replied that yes she had. I said that I really hoped that she understood, and also that she wasn't going to bail. She said that although this was not her ideal situtation, her daughter was very happy and safe at my day home and as far as she was concerned, they were staying put. YAY!

I sincerely would have cried to have lost her little one. She's a caregiver's dream - 19 months old, rarely cries, naps a solid 2-2.5 hours, cute as a button, AND only weighs 20 lbs (lol that one was a bit of a joke, but your back and shoulders know what I mean at 5:30 on a Friday ;))

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Originally Posted by Alphaghetti

Just wanted to update in case some of you didn't read on the other thread:

I sent out the email on Wednesday (long version), and one mama got back to me right away saying that she had zero problem with a 4th. I didn't hear back from the one who I knew would have a problem. So, Saturday, I texted her, asking if she received my email. She replied that yes she had. I said that I really hoped that she understood, and also that she wasn't going to bail. She said that although this was not her ideal situtation, her daughter was very happy and safe at my day home and as far as she was concerned, they were staying put. YAY!

I sincerely would have cried to have lost her little one. She's a caregiver's dream - 19 months old, rarely cries, naps a solid 2-2.5 hours, cute as a button, AND only weighs 20 lbs (lol that one was a bit of a joke, but your back and shoulders know what I mean at 5:30 on a Friday ;))

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So good to hear!! Hahaha, I used to have a little "elf" in my care, too! Just a dainty little thing and so cute. Also napped really well.
My p/t boy on the other hand, easily weighs as much (I might even say more!!) as my 4 1/2 year old daughter, and he is only 2!!!

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Originally Posted by mom-in-alberta

So good to hear!! Hahaha, I used to have a little "elf" in my care, too! Just a dainty little thing and so cute. Also napped really well.
My p/t boy on the other hand, easily weighs as much (I might even say more!!) as my 4 1/2 year old daughter, and he is only 2!!!

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Hilarious, as I also have an almost 2yo little guy who weighs a tonne!

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Originally Posted by Alphaghetti

I sincerely would have cried to have lost her little one. She's a caregiver's dream - 19 months old, rarely cries, naps a solid 2-2.5 hours, cute as a button, AND only weighs 20 lbs (lol that one was a bit of a joke, but your back and shoulders know what I mean at 5:30 on a Friday ;))

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LOL I totally hear you on that one !!! I have a 3 year old that I would rather hoist up and down than the 1 year old I have

Good for you that you get to have a 4th. More $$$$ and hopefully it will be a positive change. It will probably take a while for everyone to adjust but good on you !