So there's fringe on the ends that you can use the beginning and end yarns for? In that case I guess I'd just start knitting at the beginning of the row with the new yarn, and see how it works, to just leave the end dangling to use as fringe. If they don't give instructions, maybe this is what they mean to do. If the end stitches end up being loose or bad looking, you could always knot adjacent strands together afterwards, to secure the stiches in place.
...I've never done knitting with exposed fringe ends like this, so I'm just guessing that this might work. Perhaps you can try a little sample swatch like this, and see how the ends act, and whether you like it.
Hope that helps! Sorry I don't have a sure answer for you...
if you do knot strands together, don't do a square knot with them (holding the strands separately, and tied like a shoe-lace), but rather, hold the strands together, and knot them as one strand, for a neater fringe. A square knot will make the strands point in all different directions, and they won't line up nicely.
Let us know how it goes, and what works!