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Powerful Business Solutions for Daycare Providers
The Most Common Contract Mistakes
Daycare Providers Make
Think about the last time you personally signed a contract at the gym,
the bank, signing up for cable service, buying
cellular phone service or
contracting to have your septic system pumped.
Did the contract only ask for your
signature or did you have to fill in
your name, address, and phone number?
More than likely, you also had
to provider your birthdate, drivers license,
and social security number. (Most companies stop short of asking for your
first born child) Those companies ask for that information, because they
know how to use their contract to protect
their businesses. You need to do the same!
Over 98% of providers fail to include a section for the parent's
name, address, phone number, and identification directly on the contract.
This important step is commonly overlooked because the provider usually asks
for this information on a separate "enrollment"
form. Your contract should be a
"stand alone" document. In other words, if you were faced with a legal
the contract should contain all the necessary information and documentation need to argue the case.
are one of the 98% who have forgotten to include this information on your
contract, all you need to do is update it with
a section for the parent to fill in this important information.
****Personal note: Be sure you verify
any information provided to you.
Look at driver's licenses and social security cards. If the parent is not willing to
let you verify
the information they have given you, that should alert you that there may be a problem.****
Due? What Will You Do?
Now, lets go back again to the last contract you signed. In the fine print, there was
a section that told you exactly
what would happen if you didn't pay for the services
you were purchasing. (You did read the fine print, didn't you?) No
company or service you were dealing with, I'm sure they told you step-by-step what
they would do (short
of kidnapping the family pet) if for some reason you didn't pay
or were late in your payments.
Most daycare providers
do not having a clear policy about what will happen if the
parent becomes delinquent in their childcare fees.
are one of them, you need to state exactly what steps you will take.
Even if you think your contract covers everything,
go back and read it again.
Is there anything you have left out?
Some questions to consider are:
How much time will you wait before taking action to collect on past
One day, one week?
Will you charge any daily late fees?
How long will these daily late fees continue?
Will you charge interest on any unpaid amounts?
Be sure that you are very specific about the steps you will take.
providers do have a policy listed on their contract that briefly talks about past
due bills, but they limit themselves
by stating that the parent will be liable for "court costs"
incurred while trying to collect the debt.
This is a mistake!
should always state that the parent will be liable for any and all collection costs.
This way, if you decide to use a
collection agency or do the collecting yourself, you are
still able to recover any costs that you incur. For example;
postage or printing costs,
attorney fees for consultation, long distance phone calls, income lost due to closure of
Since ProviderWatch offers free reporting on all delinquent accounts, many providers
a policy that informs the parent that their account information will be
reported to ProviderWatch.
Remember, any time
you have an unpaid daycare bill; you can immediately contact
ProviderWatch with this delinquent account information. This
is a free service and
can be done via the website (http://www.providerwatch.com) or by a toll free phone
This is an example of the policy to inform parents of this
action on past due accounts:
If your childcare account remains unpaid for any reason, be advised that your account
will be reported to ProviderWatch immediately. ProviderWatch is a credit reporting agency
that specializes in childcare
Your delinquent account being reported to ProviderWatch will likely make it more difficult
for you to find
childcare providers willing to accept your children until any such accounts
have been paid in full.
may contact ProviderWatch if any childcare provider informs you that their decision
not to accept your child into care
is based in whole or in part on information received
from this agency. ProviderWatch will disclose any delinquent account
on record so that you may resolve these accounts.
ProviderWatch * P.O. Box 1178 * Grants Pass, OR 97528
"Prior", "Previous", and "In Advance"??
The third most common mistake is using words like "prior authorization", "previous
"in advance" in your policies.
For example: "The parent must pick up their child by 5:00 p.m. unless prior
have been made."
Stop and think about that for a minute.
Imagine yourself standing in front
of a judge trying to explain to him that a phone
call from the parent 20 minutes before 5:00 was not your
idea of a "prior arrangement".
By themselves, these words don't mean anything. Especially when you are standing
a courtroom trying to prove a case.
If you want to use terms like this, be sure to include specific information
such as how much time will qualify to be considered "prior arrangement". Be sure you clearly state
that you must approve
of any changes in such procedures or policies.
(The parent should not be allowed to make a judgment call on what will
work for you.
Also, when you are considering these policies, remember to require
"notices" and "alternative arrangements" to be in writing as often as possible. This doesn't mean
that you have to
require a big fancy form every time; just a note from the parent will work.
It is best to have both
signatures on these types of documents, yours and the parent involved.
Save these notices in the child's file!
No matter what, be sure your contract includes information allowing you to update your contract!
Towards the bottom of your contract make sure you have a section that clearly says you have the right
to update and/or change the terms of your contract as needed.
You will of course need to stipulate that the parent
will receive a written notice of any changes, 14-30 days in advance of the changes taking effect.
the parent plenty of time to review your proposed changes and decide if they want to be bound by them. We recommend
giving a 30-day notice rather than 14 days.
People usually don't like change, so give them time to adjust!
If you don't include this policy, you may end up being
stuck with your existing contract, even if you decide there are changes you want to make!
Now that you know what some common contract mistakes are, re-read yours!
Have you made some of these same mistakes?
panic! Just use the information in this exclusive report and fix those areas.
It shouldn't take long to make the necessary
changes. Remember that you will need to let your childcare parents know that you are updating your contract!
If you see
some of these common errors in your own contract, the chances are that there are probably more! On average, our professionals
find 10-12 mistakes, errors,
or omissions on a childcare contract. It is terrible to get stuck in a situation just because
of a simple mistake that could have been easily fixed!
Providers lose in small claims court every day, simply because
they didn't know what to write or how to write their policies.
Almost every situation could have been different if only
the provider would have had an effective "winning" contract.
How Can You Make Sure Your Contract Will Protect You?
ProviderWatch has a simple answer that won't cost a fortune! Every provider who
becomes a member of ProviderWatch receives
a comprehensive, personalized contract review for FREE! Don't wait to lose a collection or policy dispute before making sure
your contract is effective! Get it done now and save yourself the headache and expense of losing on a technicality.
In addition to your initial personalized review, you can get your contract reviewed for free EVERY year that you are a
No more stress! We want to make sure you are successful and don't lose money by making a simple
your childcare contract! Like I said before, our professionals find 10-12 mistakes on each contract that they review.
can stop worrying!
Membership with ProviderWatch also allows you to screen your applicants using our
national database of delinquent daycare accounts. You can find out if any
new parent has unpaid bills with other providers!
We are the only company that offers
a service like this and we have been helping daycare providers screen applicants since
Whether applicants have bounced checks, left without notice, or refused to pay their
co-payment; no matter what
the reason, you will know right away if the parent applying to your daycare still owes money to other providers and make the
best decision for your business.
This service alone saves providers hundreds of dollars every year plus you have the added
benefit of a free annual contract review!
The regular cost of membership is just $49.95 for 12 months! Membership
is available to in-home childcare providers and daycare centers in all 50 states. No matter where you
live, you can put
us to work for you!As a bonus, when you join today, using the link below, you can become a member for only $44.95 and
get express processing of your contract review!
****Personal note: The cost of membership is
usually tax deductible as a business expense!****
Instead of waiting up to 3 days to have your contract review completed,
you will receive your complete review within 48 hours! You save 10% on the cost of membership and get
your contract review
What are you waiting for? Save money every year and get the peace-of-mind you deserve.
Isn't it time
you put the power of information on YOUR side?
Click here to get started; www.providerwatch.com/special.html .