Complete 10 of the TownGo School Missions. You can find 'School Missions' on the far right tab of the TownGo app menu. School Stories unlock in Chapter 2.
You can achieve this quite quickly. The first ten I completed were:
Dance Club:- Let's Dance (score over 100,000 points in Let's Dance. Easy enough on normal, or 100% easy.)
- Esmeralda (score over 100,000 points in Esmeralda. Easy enough on normal, or 100% easy.)
Skateboarding:- Get Some Air (score over 5,000 in the skate mission Get Some Air)
eSports Club:- Fujiwara (beat Fujiwara at Virtua Fighter)
- Yoshiba (beat Yoshiba at Virtua Fighter)
- 2 wins (win 2 times at the eSports Club game)
- 4 wins (win 4 times at the eSports Club game)
- 00 minutes 40 seconds K.O. (win at the eSports Club game with a KO victory within 40 seconds)
- 00 minutes 30 seconds K.O. (win at the eSports Club game with a KO victory within 30 seconds)
- 00 minutes 15 seconds K.O. (win at the eSports Club game with a KO victory within 15 seconds)
Playing Virtua Fighter at the eSports club is probably the quickest way to rack missions up. To win quickly and without taking damage, use Vanessa, hold back and spam kick (
). It gets your opponent into a difficult to break loop.