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Except these are people taking care of your kids during the day, it isn’t that simple.

Not when they’re shut down. Requiring a full tuition payment because “wouldn’t it be a shame if you lost your spot...” is extortionate.

Well, you stopped being a client. I don't find it all that strange.

They are stopping the service. Continuing to pay is a bit crazy. Just check what it sounds like if they write out the quid pro quo:

"Keep paying us for the service we aren't giving you or else we'll blacklist you when service resumes."

I don't think you'll get a lot of people signing up for that.

The other risk than losing your spot is paying them and they go out of business anyway. So you're out both the cash and the service.