If your family is asking you to terminate, then its not you. I would find a replacement them terminate. As for a notice just say something like:
After a great deal of consideration I have decided that my daycare is not the best fix for xxxxxxx.
Xxxxxx's last day of care will be _______________. I wish you the best of luck finding a more suite daycare.
I don't think you need to go into much detail.

































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