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The alliance with Goodminton was broken when the combined airforces of Frenemy and Quisling entered Goodminton's airspace in force and demanded the Side's entire treasury. They were driven off, Frenemy being heavily defeated. Frenemy then allied with Haffaton and withdrew from the area.
It is likely that Frenemy has been destroyed by the time the Faq-Haffaton war begins, as Haffaton's territory extends far beyond the region in which the Goodminton war was fought and the only word of Frenemy was the presence of one of their Warlords in Wanda's garden.
Real World References
The word "frenemy" is a portmanteau of "friend" and "enemy", and refers to a supposed friend who is actually an enemy or competitor.