That drop helped push net income to $12.1 million, down from earnings of $16.9 percent for fiscal 2008. Revenue of $82.4 million was off from  $87.6 million the prior year. Franchise fees fell to $10.3 million, down 52 percent from $21.4 million for fiscal 2008. That was somewhat offset by $31.6 million in royalties and advertising revenue for the most recently ended year, up 20 percent from $26.3 million a year earlier.

On the expense side, Liberty has been ramping up its advertising spending. This year’s $12.1 million was 19.3 percent higher than the amount spent in 2008 and just under 40 percent higher than advertising expense for fiscal 2007. O’Gorman said advertising increased with the growth in the number of offices, with franchisees paying 5 percent of their revenue towards advertising.

Earlier this year, the company announced it had a 15-percent increase in tax returns prepared and a 22 percent increase in revenue during the 2009 tax season. However, fees from tax returns prepared at company-owned stores dropped to $4.57 million from $4.48 million year to year. The company said it added 400 offices during the tax season.