Buying a US Franchise: Check Required Opening Hours

A franchise’s required opening hours can turn an attractive business proposition into a poor fit for your location or budget. Before joining the US franchising community, establish when the outlet must trade, who can change that schedule and whether exceptions are available. The important question is not simply whether you can keep the doors open, but whether the required timetable makes commercial sense.

Find the binding trading requirements

Do not assume the hours displayed by an existing outlet will apply to yours. Different locations may operate under different agreements, approved exceptions or property restrictions. Ask the franchisor for the precise requirements for your proposed business.

Read the franchise agreement alongside any relevant operating manual provisions and location-specific addenda. The Federal Trade Commission (FTC) identifies hours and days of operation as examples of requirements that may appear in the operating manual. Its guidance also explains that the federal Franchise Rule does not require franchisors to provide the manual itself.

If access to the full manual is restricted, request supervised access or the relevant extracts before committing. Ask your solicitor to establish how the agreement incorporates manual requirements and what power the franchisor has to amend them.

Create a written schedule covering:

• Minimum opening and closing times for each day.
• Weekend and public holiday trading requirements.
• Seasonal schedules or extended promotional hours.
• Separate requirements for delivery, collection and in-person service.
• Preparation and closing work needed outside customer-facing hours.

Distinguish mandatory hours from recommendations. A sales representative’s description of a “typical working week” is not a substitute for identifying your actual obligations.

Test the economics of the whole schedule

An outlet can be profitable overall while losing money during particular trading periods. That matters if the franchise agreement requires you to remain open during those periods regardless of local demand.

Ask your accountant to model the required timetable, rather than a shorter schedule you would prefer. Include utilities, security, cleaning, delivery arrangements and the paid time needed before opening and after closing. Some costs will continue whether you trade or not; others arise specifically because you stay open longer.

For a practical test, estimate the additional gross profit an extra trading period would need to generate to cover its additional operating costs. Treat any assumed customer numbers or spending levels as assumptions, not established results.

For example, a mandatory late-evening session may require extra security and cleaning even if customer traffic is modest. Conversely, shortening the day might reduce sales at other times if customers value consistent availability. Test both possibilities rather than assuming shorter hours are always better.

Keep this assessment separate from any earnings claim made by the seller. Where a franchisor makes financial performance representations, the FTC Franchise Rule generally requires them to appear in Item 19 of the Franchise Disclosure Document (FDD), subject to the Rule’s provisions.

Check exceptions and conflicting restrictions

Ask how the franchisor handles temporary closures, severe weather, equipment failures and interruptions to essential services. Find out whom you must contact, what evidence is needed and whether approval must be obtained in advance where practicable.

Also investigate planned exceptions. Can an outlet use a reduced seasonal timetable? Is there a process for requesting shorter hours after a sustained period of weak demand? What information must support that request, and can permission be withdrawn?

Compare the required schedule with restrictions affecting the premises, including lease terms, shopping centre access, permitted delivery times and applicable local rules. A contractual requirement to open does not override a legal restriction. Equally, a landlord allowing shorter hours does not necessarily release you from the franchisor’s requirements.

Resolve conflicts before signing. If the purchase depends on an agreed exception, have your solicitor ensure it is recorded in an appropriate binding document, including its duration and any conditions.

Assess future changes before committing

A workable timetable today may become expensive if the franchisor can later extend it. Check whether changes require notice, whether implementation costs fall on you and whether there is any mechanism for location-specific review. Ask what happens if you cannot comply and have your solicitor explain the relevant contractual consequences.

US franchise purchases are specifically regulated. Under the FTC Franchise Rule, prospective franchisees generally must receive the FDD at least 14 calendar days before signing a binding agreement with, or paying money to, the franchisor or its affiliate in connection with the proposed franchise sale. State disclosure, registration and franchise relationship laws may also apply. Disclosure does not itself guarantee commercially reasonable opening hours or a right to shorten them.

Use the review period to settle unanswered timetable questions, not merely to acknowledge receipt of documents. If an essential requirement remains unavailable or unclear, postpone your commitment.

Practical takeaway: Obtain the required trading schedule, cost the full operating day and document any essential exception before buying. Choose a franchise whose binding hours work for your location, not just its sales presentation.