Buying a Franchise in Egypt: Check the Mandatory Opening Hours

Opening hours may seem like a minor detail when buying a franchise in Egypt, but they account for a significant share of staffing, electricity, security and transport costs. In franchising, a consistent customer experience requires clear rules, not an open-ended obligation to keep trading regardless of the circumstances. Before signing, check who sets the hours, how they can change, and when you can request an exception without breaching the agreement.

Where is the obligation to observe opening hours set out?

Do not just look for a clause headed ‘Opening hours’. The requirements may appear in the operations manual, brand standards or the franchisor’s approval of the site. The agreement may also refer to a schedule that the franchisor will provide later, leaving you buying a franchise without knowing how many hours you will actually be required to operate.

Request a written schedule showing opening and closing times for each day, including arrangements for public holidays, seasonal periods and Ramadan. Ask whether customer-facing opening hours differ from the hours for accepting delivery orders, and whether staff must remain on site after closing to complete cleaning and preparation.

Turn the answers into a specific checklist:

• Are the hours fixed, or are they a minimum that can be extended?
• Are there days when the outlet must open without exception?
• Can the franchisor increase the hours simply by giving notice?
• Do the same rules apply to all locations despite differences in demand?
• Does a one-off early closure count as a breach, and how would it be evidenced?

Egypt’s Micro, Small and Medium Enterprise Development Agency highlights the importance of the operations manual and of defining rights and obligations in the franchise agreement. In practice, ask to review the section on opening hours before committing, even if this requires arrangements to protect the manual’s confidentiality. ‘You will learn the details during training’ is not enough to assess the cost of your investment.

Calculate the cost of an extra hour, not the daily average

An outlet can be profitable over the day while consistently losing money in its first hour or final two hours. Do not assess the proposed schedule using total daily sales alone. Request hourly sales data for comparable outlets, if available, together with an explanation of differences in location, season and customer base. Do not treat another outlet’s performance as a guarantee for your own.

Ask your accountant to model one scenario using the proposed hours and another using extended hours. The calculation should include actual staffing requirements, energy, cleaning, security, staff transport where needed, and waste associated with preparing products during periods of low demand. An extra hour may require a different shift pattern or a full set of transport arrangements, rather than simply one more hour’s wages.

Compare the expected contribution margin from additional sales with the additional operating cost. Here, contribution margin means what remains from those sales after their variable costs, such as ingredients or materials, packaging and related commissions, but before deducting the cost of extending opening hours. Avoid counting the same expense twice.

Also ask: if late opening is required more to support the brand’s image than to meet local demand, will the franchisor agree to a time-limited trial followed by a review of the results? The aim is not to secure the freedom to close whenever you like, but to establish an obligation that is affordable and sustainable.

What legal limits apply to opening hours in Egypt?

Egypt has no standalone, comprehensive franchise law, nor a general mandatory disclosure regime covering all franchise agreements. The relationship is governed by general legal rules, including Civil Code No. 131 of 1948 and Commercial Law No. 17 of 1999, with other legislation applying according to the nature of the business and the relationship. Specific obligations may arise if the arrangement falls within another legal category, such as technology transfer.

A franchise agreement cannot authorise opening hours that breach applicable regulatory decisions on business opening and closing times, or licensing conditions. Rules may vary by business activity, location and period, so check with the relevant authority before adopting an operating schedule rather than relying on the experience of an outlet in another governorate.

The premises’ opening hours are also not the same as an individual employee’s working hours. Shifts, rest periods and overtime must be organised in accordance with the labour law in force, and their costs included in your calculations. If the outlet is in a shopping centre, check the opening-hours obligations in the lease too: the franchisor’s approval to close does not necessarily mean the landlord has agreed.

Ask your lawyer to ensure that the opening-hours clause addresses conflicts with legal requirements, without assuming that every restriction or fall in demand automatically releases you from your obligations.

Negotiate a clear process for changes and exceptions

Rather than seeking a general promise of flexibility, propose a written procedure for changing opening hours. It should specify who can approve a change, what supporting documents are required, the response deadline and how the decision will be recorded. Do not assume that the franchisor’s silence amounts to acceptance unless the agreement clearly provides for this.

Distinguish between a planned change, such as cutting hours when demand is low, and an emergency closure to protect people from danger. For the former, you can agree on a review of sales and cost data. For the latter, you need a rapid notification process, a record of the reason for closing and steps for resuming operations, taking account of instructions from the relevant authorities.

Also request reasonable notice before any non-emergency extension of hours required by the franchisor, so that you can arrange staffing and budgets. You could negotiate a temporary trial of the extended hours, followed by a joint assessment against agreed indicators, rather than allowing the change to become a permanent obligation immediately.

The practical takeaway: do not sign until you have a clear operating schedule, an estimate of the cost of meeting it and a written process for changing it. Opening hours form part of the true cost of a franchise, even if they do not appear among the fees.