I had a similar problem with my Manco Critter. It needed new brakes so I got the brake band and drum from Northern Tool and it was too tight. Just like yours. No adjustments available for that type of setup. I thought all 4” brakes were the same but when I ordered another one online made for my model kart it fit perfect. I compared the drums and bands and they were just a little different in size but that made a big difference in fit and band clearance. They were both listed as 4”. Maybe you just have the wrong band or drum.
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