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Daycare Center and Family Home Forum>Do You Refund Deposits If You Terminate For Cause?
Unregistered 05:57 AM 01-28-2014
I take a 2 week deposit that is applied to the last 2 weeks of care, my contract says I do not give refunds on deposits. I'm about to terminate without notice for disrespectful and bullying behavior from a parent. Would you refund the deposit?
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Blackcat31 07:24 AM 01-28-2014
The deposit is suppose to cover the last two weeks of care. If you aren't willing to provide those last two weeks of care then I think it is only right that you return the deposit.
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Unregistered 07:28 AM 01-28-2014
Agreed. If you are terming immediately, refund the money since you are breaking the contract and not providing services that they have pre paid for. Can you make it two more weeks with them so you dint have to return money? Give them notice and they may even leave earlier than two weeks and forfeit their deposit or part of it. I've had that happen a few times.
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SSWonders 07:35 AM 01-28-2014
I would refund because I would want to be done with the family and avoid any more hassle with them, and because you aren't willing to provide the last two weeks care.
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therov 07:38 AM 01-28-2014
I agree with the others: If you can't give them two weeks more care, you should refund it. Make sure you amend your policy manual after this to clarify whether deposits are returned if you terminate the contract for cause.
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Cradle2crayons 07:40 AM 01-28-2014
I also agree. I would give the a Two weeks notice if possible and keep the deposit. But if your contract says no refunds even if termination is I'm. Radiate, the. It is what it is. But personally, I would do a two weeks notice because chances are they won't stay anyway but you offered so you keep the deposit.
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mountainside13 07:40 AM 01-28-2014
What does your contract say?
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Cat Herder 07:46 AM 01-28-2014
Originally Posted by Blackcat31:
The deposit is suppose to cover the last two weeks of care. If you aren't willing to provide those last two weeks of care then I think it is only right that you return the deposit.
^^^ I agree with Blackcat. It needs to be a two way street.

1. Offer two week notice.
OR
2. Refund Deposit.

*** I see no ethical way to keep the deposit without offering the services it was designed to provide.***
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Heidi 08:25 AM 01-28-2014
Originally Posted by Cat Herder:
^^^ I agree with Blackcat. It needs to be a two way street.

1. Offer two week notice.
OR
2. Refund Deposit.

*** I see no ethical way to keep the deposit without offering the services it was designed to provide.***

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daycare 08:45 AM 01-28-2014
BTDT..

I had a parent call my son a name many year ago, he thought it was in a joking manor, I was livid. They were with me about a month when it happened. I took only a one week deposit at that time.

In my policies it states that should the provider need to term for unethical or aggressive behavior etc that I would term immediately without refund.


I did term immediately, I did not refund any of the money that they had paid nor did I give back any of the deposit.

The family did not fight me at all. The wife was super sweet, husband, not so much. So the wife was super embarrassed and just swallowed it.
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AnneCordelia 08:48 AM 01-28-2014
I take a deposit, equal to one week's fee, that is non refundable except to use towards the last week of childcare when proper notice of termination has been given by either party. It protects me and my business from unexpected departures, which protects my income. If a family has done something so heinous that I must terminate immediately then they lose the right to that deposit, as this is an unexpected departure...exactly what the deposit protects me from. It gives me a paid week to get my info out there to fill that spot asap.

Once I did return the deposit because I wanted the family to gtfo asap.
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Blackcat31 08:58 AM 01-28-2014
This is from Tom Copeland's blog about contracts and policies.

"While I recommend that you require parents to give you a two-week notice to end your contract, I also recommend that you do not restrict yourself to the same terms. Instead, put in your contract, "Provider may terminate at will." This gives you the flexibility to end your agreement immediately if the parent is threatening you, creating a disturbance for your business, or refusing to pay you for your services.

Refund payments?

You cannot charge parents for days that you refuse to provide care. Let's say you want to immediately terminate your contract with a parent. It's Friday. The parent has paid you for the past week and has paid you in advance for the last two weeks of care. If you tell the parent she can't come back on Monday, you are obligated to refund her the amount she paid you for the last two weeks."

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AnneCordelia 03:12 PM 01-28-2014
Originally Posted by Blackcat31:
This is from Tom Copeland's blog about contracts and policies.

"While I recommend that you require parents to give you a two-week notice to end your contract, I also recommend that you do not restrict yourself to the same terms. Instead, put in your contract, "Provider may terminate at will." This gives you the flexibility to end your agreement immediately if the parent is threatening you, creating a disturbance for your business, or refusing to pay you for your services.

Refund payments?

You cannot charge parents for days that you refuse to provide care. Let's say you want to immediately terminate your contract with a parent. It's Friday. The parent has paid you for the past week and has paid you in advance for the last two weeks of care. If you tell the parent she can't come back on Monday, you are obligated to refund her the amount she paid you for the last two weeks."
This is sound advice...Tom Copeland knows his business. This makes me ask what about deposits made and then parents cancelling the contract before care starts. Is their deposit to be returned then too because no care was given?
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Blackcat31 05:45 PM 01-28-2014
Originally Posted by AnneCordelia:
This is sound advice...Tom Copeland knows his business. This makes me ask what about deposits made and then parents cancelling the contract before care starts. Is their deposit to be returned then too because no care was given?
Here's the whole article and it talks about exactly that...

http://www.tomcopelandblog.com/2010/...lding-fee.html
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Tags:business ethics, business management, deposit - won't refund, deposit agreement, tom copeland
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