I would have even looser guidelines, but still suggest some facetime in the office if possible. Mostly the team themselves should be able to mandate their own locations and hours to fit their needs. If they are productive... Some teams may prefer heavy pair programming and thus may need to be most of time in the same location. Others(most) would use some sort of hybrid where the 5 hours 3 days a week probably works w…
Way too many times management will try and dictate based on what they think is right without taking in the desires and the makeup of the team. This usually is shown in the form of all hands meetings on a very regular basis -- more than one startup I've been at have fallen into this trap.