What is a net branch arrangement according to Rhode Island law?

A net branch arrangement, according to Rhode Island law, refers to a situation where a licensee appears to own the license in form but is actually operated by a parent company or another entity. This structure allows the branch to function with a degree of autonomy while still technically being tied to the main licensed entity.

This arrangement can create confusion regarding the actual ownership and responsibility for compliance with licensing requirements. It's important for consumers and regulatory bodies to understand who is ultimately accountable for the branch's operations, thus the emphasis on how the licensee is portrayed in this type of structure.

In contrast, the other options describe different aspects of branch operations or management that do not specifically capture the unique characteristics of a net branch arrangement as defined under Rhode Island law. They focus on operational independence, location permitting, or employee oversight, which are not the defining features of a net branch setup.