It's free-schmee. Repeating a word (e.g. free) and adding a word that rhymes with it beginning with schm (schmee) is a common way to show contempt for, or dismissal of the original word. I believe the origin of this is Yiddish.

Never heard it and don't know it, it's great that your English is that good that you probably get it without subtitles! An exclamation!