I charge a $50 holding fee and that's all it is. A holding fee. I'm holding the spot for a child and that's exactly what the fee covers. I do not deduct it from the tuition fee at all and it is un-refundable. That discourages most families from simply saying that they'll be coming and then dissapearing.

I also have a contract with them just like the rest of my families and also require payment for the first week and a regular deposit from them. Most families can't give the first week's of care AND a full deposit (two-weeks of care) so I spilt it into four payments and they are required to give me 1/4 of the fee along with the first week's payment and the holding fee when they register. The rest of their deposit is paid in payments during the first three weeks of school. Families that want me to hold a spot for their children have a start date on their contract as the beggining of school year and they are required to give a two-weeks notice if they think about leaving just like anybody else. I do, however offer these families a chance to change their mind and get their first week's fee and deposit back if they give me a notice two-weeks before school starts. The only thing I never return is their holding fee. If they don't give me two weeks notice before school starts and they don't show, they forfeit the holding fee, first week fee and their deposit. If they change their mind and don't want to bring their child anymore once school starts it's just like everybody else. They have to give a two-week's notice and are required to pay for those two weeks (or I deduct their deposit from the fee and they pay the difference).

It may seem extreme but I don't want the hassle of wondering if their really coming or not so charging a holding fee and requiring a two week's notice before the year starts really discourages the iffy families. Any families that are willing to pay a holding fee, first week of care and a deposit I know are serious. Some families choose to wait until the year starts to see if I have any openings left so that they don't have to pay the holding fee and that's fine by me but it's their risk.

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