Fladmoe-Lindquist draws inspiration from the emergence of resource-based=capability theories especially in the early 1990s to develop what she calls a capability theory of international franchising. She combines two types of capabilities: a more general, administratively driven (including ability to monitor agents) capability of international franchising on one hand and, on the other hand, what she calls a capacity for developing international franchising. The latter is a more dynamic capability, connected to agility and flexibility and an ability or potential to operate in future new and diverse markets.