Opinion ID: 1254932
Heading Depth: 2
Heading Rank: 1

Heading: Minimum Purchase Requirement

Text: A minimum purchase requirement can be a franchise fee if the distributors were required to purchase amounts or items that they would not purchase otherwise. Twin Cities Galleries, LLC v. Media Arts Group, Inc., 476 F.3d 598, 601 (8th Cir.2007) (quoting Upper Midwest Sales Co. v. Ecolab, Inc., 577 N.W.2d 236, 242 (Minn.Ct.App.1998)). To so determine, the Court applies an objective test, examining whether the [minimum purchase] requirements were unreasonable. Id. (quoting Upper Midwest, 577 N.W.2d at 242). Coyne does not assert, nor did it below, the minimum purchase requirement was unreasonable, so the district court did not clearly err in finding the minimum purchase requirement is not an indirect franchise fee under the MFA.