Do I need to refund the deposit?

[Bubbles2015]

Hi, I could really use some advice.

I'm starting a wrap-around childcare business, the first day is tomorrow. All the parents have paid a £50 deposit to secure their child's place, and based on these numbers I've bought stock (food for breakfasts and dinners for the week, equipment) and hired someone to help with numbers to keep me within ofsted ratios.

This evening I've received an email from a parent who says he no longer requires childcare and he wants his deposit back. At initial contact I've said in emails that the deposit is taken of final invoice, but this parent has never had an invoice, because we start tomorrow. Our contract, which he never signed and got back to me, states a 4 week notice period to changes in requirements.

I'm really annoyed about the fact it's now costing me money because he's given me such short notice. If they'd signed the contract it would cost him a months invoice (which is £240). I've no inclination to chase him for that amount, but am I within rights to keep his deposit? Or to keep a portion of it to cover the costs of his short notice? Or do I not have a leg to stand on?

I'm a new and fragile business. I'm running a seriously tight budget.

Advice please??

[des8]

Re: Do I need to refund the deposit?

Hi and welcome.

IMO they are not entitled to a refund.
The deposit was to secure a place.
They no longer want that place, but by informing you so near opening date of their change of mind they haven't given you any opportunity to fill that place.
This means you might be running at a loss.
They forfeit their deposit.

Good luck in your new venture

[MissFM]

Re: Do I need to refund the deposit?

Hi Bubbles and welcome to LB

You will get lots of good advice here.

Meanwhile, I'd've thought the deposit was non-returnable with such short notice.

Did you explain your terms when he first booked?

When did he book?

X

- - - Updated - - -

Crossed with Des - and we seem to agree! x

[des8]

Re: Do I need to refund the deposit?

as always MissFM

[FlamingParrot]

Re: Do I need to refund the deposit?

Hi, I could really use some advice.

I'm starting a wrap-around childcare business, the first day is tomorrow. All the parents have paid a £50 deposit to secure their child's place, and based on these numbers I've bought stock (food for breakfasts and dinners for the week, equipment) and hired someone to help with numbers to keep me within ofsted ratios.

This evening I've received an email from a parent who says he no longer requires childcare and he wants his deposit back. At initial contact I've said in emails that the deposit is taken of final invoice, but this parent has never had an invoice, because we start tomorrow. Our contract, which he never signed and got back to me, states a 4 week notice period to changes in requirements.

I agree with MissFM and Des8, although they did not return the contract stating four weeks notice required, their payment of £50 would constitute acceptance of your offer of providing childcare. I shouldn't expect a refund either. :nono:

[Bubbles2015]

Re: Do I need to refund the deposit?

Thanks so much for your welcome and your advice.

I'm going to have a think about what to do. It's a small town and I'm a new business. Don't really need anyone bad mouthing me this early on, even if I am in the right. At the same time, I need to pay the bills!

They booked the places (2 children) months ago, back in May. I've had no indication from them since then that there was any chance of them not taking the place, and I've turned people away as I'm full. If I'd had even a couple of weeks notice, I'd have been able to fill their places, but the night before school starts, parents have sorted their childcare and gone elsewhere. It's going to take a bit of time to fill the places now.

Thanks again for your advice.
x

[MissFM]

Re: Do I need to refund the deposit?

You could always (if you were feeling generous) tell him that, should the place(s) be filled during the term, you may consider refunding part of his deposit as a goodwill gesture - but in the circumstances you describe I can't imagine anyone thinking it reasonable for him to expect any refund. x