It is stories like this that break my heart as they make it that much harder for every other 'new business' to get themselves established because other parents read this and than they worry 'do not want to take a chance of a newbie because she might decide she does not like it and close up shop

Have you signed a contract with this provider?

Either way my guess is that the contract does not address a security deposit or notice period being 'paid' since she changed this the 1 business day before you were do to commence care so I am making an educated guess she either has NO contract or it is not properly written to protect herself or you in this circumstance.

If there is no contract or if the contract does not address 'security deposits' being non refundable and only to be able to applied to 'service' given proper notice by either the client or the provider than I agree with Lou ~ in this instance as a parent I would firmly request the deposit back!

Since based on the info you have provider it is the provider who is reneging on the arrangement by closing up after only one week of trying this and it is not only not fair to your child to continue going to this person for two weeks since she is closing and he has no hope of forming a 'bond' with her so why try but IME it is not IDEAL to have that many providers in such a short period for a toddler as his first experience in childcare and it could make it harder at the 'next' option you choose ... IMO better to just take the time to find someone 'new' while you stay home... if she refuses to give you your deposit back I would not send him but instead file a Better Business Bureau complaint as well as a Small Claims file to get your money back for entering into a contract not in good faith and than keeping the $$$!

As a provider if this was ME terminating in these circumstances in the interest of good customer service and KARMA I would have offered to refund your deposit if you wanted in lieu of notice OR provide care for the two weeks if you really needed it but I would let YOU be deciding since you have done nothing wrong to breach your end of the deal and your child's behaviour is 'normal transition behaviour' and not aggressive or putting any one else at risk or causing a liability to the business basically ... IMO I would not have a leg to stand on in demanding to keep your $$$ since I agree no parent should be financially blackmailed into sending their child for a notice period when it is the provider terminating for a reason such as this .... if you'd been in care for years and she was retiring and giving notice that would be different but IMO closing 1 week into a contract just cause she 'changed her mind' is just BAD FAITH business practices and gives our business a really bad name