When I went to the interview, I was told that all the schools were owned by "an American corporation" (translation = naturalized Chinese citizen) and that they were not running a Franchise system. Does any one no anything different?

If you are recruited by these people, be careful because the recruiter (who is western) lives in one city and does not really know the situation at the various schools around China. But that is a recruiter anywhere.
As always check with former and current teachers.

It does seem to be their standard policy to have some sort of laowai on staff in some sort of junior mangement position.

In regards to what the OP said that it might be an okay to work at place if they fix those problems, that is wishful thinking.
Half of the issues revolved around deceit and manipulation of the FT. Poor management practices can be fixed, teaching a grown man ethics will take a life time!

I wouldn't call total losers and jerks, more like naive fools. They are recent college kids that dress really preppy. They remind me of the rich kid frat at my university. All business majors and economics majors with egos.

I really wonder what they actually manage. Any one know?