The Friendly Dragon is from the Invite a Friend Program. Players invite their friends to Wizard101 and their friends get the dragon to help them get started in the game, and if the friend subscribes or buys $10 in crowns, you get Crowns.
To invite Friends, open your Friend panel in the game and click Invite Friends.
I would like to have the choice of a special pet instead of the crowns especially since I cant buy the cards with the special pets. I have asked my cousin in California and my mom is going to St. Louis but I dont think they think it is important.