Virginia Beach, Va. – With the economy taking a toll on franchise sales, JTH Tax, which operates the Liberty Tax Service, saw a 28.4 percent decline in earnings on a 6.4 decrease in revenue for the year ended April 30.

Franchise fee revenue comes from the sale of franchisee territories and last year was a bad one for selling franchises, said Martha O’Gorman, the company’s chief marketing officer. “No one could borrow any money,” she explained. But she continued that “The good news is that we are seeing a significant recovery this year and our franchise sales are sky rocketing.  You should see that number return to normal or increase for FY 2010.”