"New Document" will allow you to create a new document in Fred from templates previously defined on the Alfresco server.

You can also see the list of templates by clicking on "Window → Templates"

To be able to add templates, you need to create a folder called Document Templates in /Company Home/Data Dictionary. Then, restart Fred and the documents you will add in the folder will automatically be available with the "New Document" command. You can add new documents in the Document Templates folder by drag and drop from your explorer.
You can set metadata for the templates. The documents created from them will automatically inherit the templates' metadata.
Only Administrator users are able to add templates, but they can be used by all the users.