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Daycare Center and Family Home Forum>Termination Fee When A Child Ages Out
kateem02 05:26 PM 09-06-2016
New to daycare-operating less than one year and I have a question about charging the two week notice termination fee. I have set the age limit to pre-k. When a child becomes school age and therefor ages out of care should I charge the termination fee? I have altered my contracts to reflect that cancelling all scheduled days constitutes termination. Wondering how others have handled kids aging out. Thanks for any and all feedback.
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Crazy8 06:33 PM 09-06-2016
I am not sure I understand what you mean by termination fee? I require a deposit up front and a two week notice - if they give the 2 week notice their deposit is credited to their last 2 weeks. If they do not give notice they forfeit that deposit.

I could not see charging someone anything extra for giving notice and leaving because they are aging out so maybe I'm not understanding the question?
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LysesKids 06:49 PM 09-06-2016
Originally Posted by kateem02:
New to daycare-operating less than one year and I have a question about charging the two week notice termination fee. I have set the age limit to pre-k. When a child becomes school age and therefor ages out of care should I charge the termination fee? I have altered my contracts to reflect that cancelling all scheduled days constitutes termination. Wondering how others have handled kids aging out. Thanks for any and all feedback.
All my kids age out by 18 months... stated in writing on the contract; I have a final end date in writing so I don't charge when they age out... I only charge the 2 weeks termination fee if they decide to leave before the contract end date. I also have a clause that can extend a contract week by week to 21 months dependent on if I have newborns waiting for the space to open or not, but to charge for them aging out... NOPE ( I do newborn to 18 months only for the most part... rare a child gets extended on a contract)
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AmyKidsCo 08:46 PM 09-06-2016
I don't understand the termination fee either.

I have parents pay for the last 2 weeks of care when they enroll. If they give 2 weeks notice they don't pay for those weeks, regardless of why they're leaving.

If they don't give 2 weeks notice I'm still paid for the 2 weeks, but there's no additional fee.
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Blackcat31 05:56 AM 09-07-2016
Originally Posted by kateem02:
New to daycare-operating less than one year and I have a question about charging the two week notice termination fee. I have set the age limit to pre-k. When a child becomes school age and therefor ages out of care should I charge the termination fee? I have altered my contracts to reflect that cancelling all scheduled days constitutes termination. Wondering how others have handled kids aging out. Thanks for any and all feedback.
Most of us do not have a termination fee but have a requirement that a family gives notice of their plans of withdrawal a minimum of two weeks prior to them actually withdrawing.

The final two weeks payment is what some providers have trouble collecting or they collect it up front like a deposit but apply the funds to the last two weeks of care.

The point of giving notice to the provider is so the provider has time to fill the vacancy and can use the final payment (for the two weeks) to fill the gap in her/his income that will exist with the departure of the family.

I know some providers that require a 30 day notice of withdrawal. I require two weeks PER CHILD so the time in which I require notification varies depending on the number of children a family has enrolled.

I have yet to hear of anyone charging a "termination fee".

Hope that helps clarify things...if not and you do charge a "termination fee" (unlike what I described above) please clarify for me as I would be interested in hearing more about this concept.
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kateem02 06:42 AM 09-07-2016
Thanks for the replies all First, I guess I need to clarify, by termination fee, I mean payment for the final two weeks of care. I do not collect this money at the time of enrollment. Although based on the comments this may be the way to go. I am concerned that asking for the final two weeks up front may be something that would be a turn-off for potential families.

The reason for my inquiry is that I have a family with two children who started in January of this year. I knew at the time that dck #1 would be entering kindergarten in fall, however dck #2 is not school age. The family has chosen to enroll dck #2 in preschool. While the family had verbally indicated to me that they were THINKING about enrolling her, I was not told for sure that she was enrolled until her last day of attendance. As I stated above, I not collect the last two weeks of care fees upfront. Therefore, I was paid for the last attendance of the children, but given no notice that I would have a spot to fill; resulting in a major gap in income. I want to keep this kind of thing from happening in the future.
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Blackcat31 07:51 AM 09-07-2016
Originally Posted by kateem02:
Thanks for the replies all First, I guess I need to clarify, by termination fee, I mean payment for the final two weeks of care. I do not collect this money at the time of enrollment. Although based on the comments this may be the way to go. I am concerned that asking for the final two weeks up front may be something that would be a turn-off for potential families.

The reason for my inquiry is that I have a family with two children who started in January of this year. I knew at the time that dck #1 would be entering kindergarten in fall, however dck #2 is not school age. The family has chosen to enroll dck #2 in preschool. While the family had verbally indicated to me that they were THINKING about enrolling her, I was not told for sure that she was enrolled until her last day of attendance. As I stated above, I not collect the last two weeks of care fees upfront. Therefore, I was paid for the last attendance of the children, but given no notice that I would have a spot to fill; resulting in a major gap in income. I want to keep this kind of thing from happening in the future.
A deposit is definitely the way to go!

If families cannot afford to pay the deposit up front I would set up a plan for paying it in parts. You could divide the amount up and have the parent make additional payments until it's paid in full.

For example lets say 2 weeks of care is $300 and the parent pays you weekly. I would have the parent pay you $200 ($150 for a week of care PLUS $50 towards the deposit) so in 6 weeks you will have the $300 to set aside as the deposit.

When the agreement for services ends and the family (or you) gives proper notice you can apply the $300 paid (during that 6 weeks) to the final two weeks of care.

Easy peasy....
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daycarediva 08:59 AM 09-07-2016
Originally Posted by Blackcat31:
A deposit is definitely the way to go!

If families cannot afford to pay the deposit up front I would set up a plan for paying it in parts. You could divide the amount up and have the parent make additional payments until it's paid in full.

For example lets say 2 weeks of care is $300 and the parent pays you weekly. I would have the parent pay you $200 ($150 for a week of care PLUS $50 towards the deposit) so in 6 weeks you will have the $300 to set aside as the deposit.

When the agreement for services ends and the family (or you) gives proper notice you can apply the $300 paid (during that 6 weeks) to the final two weeks of care.

Easy peasy....
Also- what does your contract say? Are they required to give two weeks notice? If so, you need to send them a letter stating as much.

Up front I charge-first two weeks, last two weeks, and enrollment fee. I do as BC does and make a payment plan that the parent signs agreeing. If they don't give notice, I have been paid the final two weeks.
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EntropyControlSpecialist 11:03 AM 09-07-2016
Originally Posted by daycarediva:
Also- what does your contract say? Are they required to give two weeks notice? If so, you need to send them a letter stating as much.

Up front I charge-first two weeks, last two weeks, and enrollment fee. I do as BC does and make a payment plan that the parent signs agreeing. If they don't give notice, I have been paid the final two weeks.
I do the same here. I only offer to do a payment plan if they express that it'll be difficult to pay (not many at all).
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hwichlaz 03:02 PM 09-07-2016
I don't charge a deposit, but payment is due in advance of care, and two weeks notice is required. They pay when they give the notice....regardless of attendance.
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Tags:aging out, contract, school age, termination fee
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