In Ontario if you move your daycare out of your home, you are NO longer a home daycare, but a daycare CENTRE. You need to do major renovations (X # of kids size toilets/sinks, windows need to be at least X big etc.). You need to get a license form the Ministry (this can take a few months to over a year to get). Its a lot of work and money. I have had friends look into this. They found that it just wasn't worth it.
As for your friend running out of a church - I am not sure if churches have special exemptions or not.
I would contact the MOE to get more information.