HELP, Parent Needs To Change Contract....

[Abigail]

So I've known since January that I would have a part time child turning into full time come June. Well I've changed my contract after my second enrollment when I opened because well.....like any new provider, I changed my mind on how I want things to work! LOL

I use to have people pre-pay their final 2 weeks. So this parent pre-paid their part-time rate for 2 weeks. Now back then I told the parent what we would do is just sign a new contract and change the rates and she would just pre-pay the full-time 2 weeks. All easy-to-understand right?

Now that I have eliminated the pre-pay, I've added a $50 enrollment fee per child enrolled in my daycare. This helps with so many things upfront including paperwork costs and touring costs and I never have to give that $50 back once enrolled unless I personally wanted too.

So this family is "grandfathered" in to my new contract technically. I didn't tell anyone my contract changed, I just changed it for new families. So do I just scribble out the old rate, write the new rate, sign, and date it. Have then sign and date it also and keep the part-time pre-payment as part of the final two weeks or should I say my contract has changed where you don't pre-pay and give back the part-time prepayment for their final two weeks of care?

ha ha, confusing I know! I wouldn't want to charge an enrollment fee because this child has been enrolled since January. Should I just start a new contract and tell her I will not charge her the enrollment fee and give her a check for the part-time final two weeks that she gave me?

I honestly only switched this so I don't have to "owe" people money. Lets say for some reason if I were to ever close for any unforeseen reason, I don't want to owe every child in my care 2 weeks worth of pay back! You know what I mean?!

Now the only issue I see running into if I credit her back and tell her I will not charge the enrollment fee is that I have just one other daycare parent who has the same contract and knows this person. If I do this I will have to be aware that the other person will be upset and ask for her 2 weeks refund too. What should I do? I have to decide ASAP.

[Blackcat31]

Personally, I would just return her pre-paid deposit that she paid and not charge the $50 enrollment fee since the point of the enrollment fee is to cover paperwork and stuff that is related to enrollment and you have already done all that paperwork since the child is currently enrolled.

Or you could apply the pre-paid 2 weeks worth of moneyto her next bill as a credit and just go from there. I know she is changing her enrollment status from part time to full time but the credit toward the first billing might be nice since her bill will now be larger than she is currently used to paying.

[Abigail]

Originally Posted by Blackcat31

Personally, I would just return her pre-paid deposit that she paid and not charge the $50 enrollment fee since the point of the enrollment fee is to cover paperwork and stuff that is related to enrollment and you have already done all that paperwork since the child is currently enrolled.

Or you could apply the pre-paid 2 weeks worth of moneyto her next bill as a credit and just go from there. I know she is changing her enrollment status from part time to full time but the credit toward the first billing might be nice since her bill will now be larger than she is currently used to paying.

I was thinking about doing that. Then they get one more week paying half-price technically speaking. My only concern is what if the other parent who also pre-paid wants 2 weeks free "just because" since it's not needed anymore with new contracts? The other person is currently expecting and asked about a baby spot which I am saving for her since I just take one baby at a time. I have one who is 5 months now so I will not take anymore infants until winter anyways. I figured if she kept her contract the same then she would get almost a week and a half free for her infant when the time comes.

[Countrygal]

Personally, I would just roll over the pre-pay and keep it for when they term. I would re-sign them up under the old contract, but perhaps not charge them the extra for the difference between the pt pre-pay and full time pre-pay. That way, when they do term at some point, you have the pt two-week pay to apply toward that final two weeks, and they have the balance to cover.

But that's just what I would do - you may have reasons for not wanting to continue that.

Another option is to return all but the 50. After all, you DID spend the time and money to sign them up originally.

Just some thoughts.

[familyschoolcare]

Originally Posted by Abigail

I was thinking about doing that. Then they get one more week paying half-price technically speaking. My only concern is what if the other parent who also pre-paid wants 2 weeks free "just because" since it's not needed anymore with new contracts? The other person is currently expecting and asked about a baby spot which I am saving for her since I just take one baby at a time. I have one who is 5 months now so I will not take anymore infants until winter anyways. I figured if she kept her contract the same then she would get almost a week and a half free for her infant when the time comes.

If the other parent that pre-paid needs or wants to change her contract then that is something to "deal" with then. Untell she changes her contract then the pre-paid money is not an issue. If this parents whants to no longer pre-pay then they should pay an enrollment fee for the infant.

[SunnyDay]

Originally Posted by Countrygal

Personally, I would just roll over the pre-pay and keep it for when they term. I would re-sign them up under the old contract, but perhaps not charge them the extra for the difference between the pt pre-pay and full time pre-pay. That way, when they do term at some point, you have the pt two-week pay to apply toward that final two weeks, and they have the balance to cover.

But that's just what I would do - you may have reasons for not wanting to continue that.

Another option is to return all but the 50. After all, you DID spend the time and money to sign them up originally.

Just some thoughts.

I agree with just rolling it over and not charging them the difference between pt and ft. Hopefully they will think you're doing them a favor

[Abigail]

This is so tough because I was just thinking earlier today that I would credit them the pre-payment which would be one week free technically or two more weeks at half-price doesn't make a difference. Then if I start a new contract they would be up-to-date with my changes and I would not charge the $50 enrollment.

As for my other family when the infant comes they will have to pay an enrollment fee for the infant. So I guess by changing one persons contract now I am chancing having to update the other and go two weeks without pay to balance out everyone into the same contract. LOL.

If I decide to do paragraph one above, should I not allow my second person who is on the old contract get two weeks free care to balance out until baby comes or should I just do it because I can afford to go 2 weeks without one parent paying to "balance out"?

[littlemissmuffet]

Honestly, I would have kept the 2 week deposits and just changed your contract to them being non-refundable! Problem solved!

[Abigail]

I run a small child care and want to be fair. If I was a parent who enrolled my child and was told that everything was refundable and all of a sudden not I would be angry and do something about it.

I sent home a letter stating this next week will be free as a credit so they don't have a balance due or credit after next week. Problem fixed and I'm happy! I've already been paid for that just back in January so I just don't like hanging onto "unearned" income. That is why I am changed my contract after the first few enrollments.

Thanks everyone for your thoughts, time will tell how well this works out!

[MrsB]

I wouldn't worry about the other family wanting their deposit back. Each one of my contracts are catered to each family and their needs. I have NEVER in all my years of daycare had a parent complain to my face that someone else only has to do this or pays this much. If the other family balks at it, say okay you wanna sign the new contract the new rate will be such and such higher amount and there is a $50 admin fee.

Good luck!

How about for all families do a non-refundable one week deposit and a yearly registration fee either the same time every year before the school year starts or a year from their sign up. It's like giving yourself a yearly bonus by helping pay for matierials needed for the year that you can stock up on for the year. Espesually great if you teach preschool or do field trips and that way you can tell the parents wont need to pay for any extra things (like field trips, project materials, new play equiptment, etc,) for the year. It also gives you an opportunity to revise your policies/contracts yearly or maybe say it also pays for one free "date night" you offer in the year (just be clear its a one time use in the year thing).

I took a FCC class with a provider that said she never did a yearly enrollment/registration fee but was deciding to go back from a LFCC to a SFCC and only do preschool because many after schoolers parents made her late for night classes; but after the class she said that when she switches her daycare over to a preschool she is going to do a yearly enrollment/registration fee.