A hydrodynamic model for dense granular flows, previously developed for confined flows, has been extended to address free surface flow down an inclined chute. Results show that the model can predict the existence of two critical inclination angles, namely, the avalanche starting angle θ(start) above which the granular bed begins flowing from an initially jammed configuration, and an avalanche stopping angle θ(stop), which is the minimum to maintain flowing conditions, in agreement with experiments and numerical simulations available from the literature. The dependence of these critical angles on the bed depth is also analytically formulated, reflecting the expected qualitative behavior. Such a hysteretic behavior is specific of granular flow and its prediction provides indications of consistence of the modeling approach. The improved model also captures the scaling of the velocity profiles down the bed depth.