why in the world did you give them back their deposit? unless i missed something, they are walking out on you without notice therefore they lose their deposit. If I were you I would cancel the cheque you sent them. Why are they leaving? is it possible they needed you until a daycare centre spot came available? in any case, keep your money. As for the other client that you are holding a spot for, you could lose them if you suddenly ask for a holding fee. I would maybe let them know that you have had to make some changes and that you wanted it to be clear that if they change their mind that the deposit they provided is not refundable. You could ask for holding fees that will be applied to their fees when they start. For examply they pay the equivalent of 2 days per week from now until they start but when they start you will deduct 2 days per week from their fees until the balance is even.