When I spin the rear wheel there's a part of the rotation that doesn't feel "free" anymore and you can see it slow down at a certain point and rolls free again until it goes around the same spot. It's no big deal as it doesn't slow down considerably but does this mean the bearings inside are about to go and seize on me within a couple of months? It's a Formula hub by the way. TIA.

Is the rim true? A rim out of true can strike a brake pad just enough to slow it down like you've descirbed.

Yep its true. Clears the brakes just fine.

Not a big deal really, it's not something I can feel while pedaling but hopefully it doesn't get any worse.

It just means more then likely the bearings need to be relubed. You can do this by using many different lubes, but the one I found that worked real well is a product made for skate wheel bearings called "Speed Skate Lube". You just shake the can and spray into the freewheel while the bike is on it's side; then spin the wheel medium slow for about 5 minutes while still on its side, and then leave it sit like that overnight.

I bought a new Shimano freewheel about 3 years ago and about 8 months later the pawls started to make loud ticking sounds that were alternating accompanied by freely moving in one area and not in another. So for kicks I tried the Speed Skate Lube...over 2 years later I still haven't heard a peep out of those pawls and it's still spinning freely.

Well that did it. Thanks!

Took off the cassette and relubed it and it spins freely all around now. I didn't think that would be it because this wheelset doesn't even have 200 miles on it... and I don't ride when it rains or anywhere excessively dirty at all.

Wonder how long this will last. Thanks again for the help guys.