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1.
Frei is German/Yiddish for "Free".
The term Frei is generally used to describe a Jewish person who is not religiously observant; specifically one who at some point was religiously/observant but no longer is.
a) Mendel: "Etty, you heard the rumors about Schneur?"
Etty: "No. What now, Mendel?"
Mendel: "Apparently Schneur is no longer religious. He went completely Frei."
Etty: "I'm not surprised at all. I already heard a while back, Schneur has been secretly hangin' out with a group of Frei'd-out friends."

b) Goldy: "Chaim, I can't deal with all these so-called divine Jewish laws/rules. I believe they're all man-made."
Chaim: "You have to follow the laws/rules regardless of whether you believe them to be the truth. It's not like you have a choice."
Goldy: "Wrong! I have a choice. I'm gonna go Frei! Many have Frie'd out successfully and I can do it to."
by Successfully Frei September 12, 2013