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His first appearance is "Reef Blower." However, he is barely seen in the episode, as he was in a car as SpongeBob zoomed past him. He's most often seen dining at the Krusty Krab. He was one of the first two background characters. Harry was the other.
His name was revealed in the episode "Patty Hype," where he was advertising the Shell Shack's talking and singing dog.
Fred appeared in "Face Freeze!" as the main character of Mr. Krabs' story. He has been seen in many episodes at the movie theater. There is one episode where he does get hurt, but he says "My leg!" in a dull tone, implying that he has sustained enough injuries to not feel the pain.