"Friends With Minor Benefits" denotes a relationship in which two friends participate in non-coital activities usually designated for more intimate relationships without the attached emotional bond.
These activities can range anywhere from simple making out all the way to mutual masturbation and/or oral sex, but does not include actual coitus (that would be considered "friends with benefits").
Guy: I walked in on Bob and Mary in a heated makeout session earlier.
Girl: I didn't know Bob and Mary were going out?
Guy: They're not. They're just friends with minor benefits.
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