If you expect to have plenty of local markets website, I suggest to follow the architecture described in the video 0.b - slide 21-24.
I suggest to create Addon Domain with document root like "domains/YOURDOMAIN.COM/public_html"
and deploy the JMS slave site into this directory [HOME_ACCOUNT]/domains/YOURDOMAIN.COM/public_html
www.jms2win.com/en/tutorial#jms12x-0b
Perhaps you could get inspired of the video 0.d that present a demo overview.
www.jms2win.com/en/tutorial#jms12x-0d
Concerning the sharing of the extension and some extension content, see the video 16
www.jms2win.com/en/tutorial#jms12x-16
I would suggest the following architecture on the disk
www.yourdomain.com -> domains/yourdomain.com/public_html
master.yourdomain.com -> domains/yourdomain.com/subdomains/master/public_html
cityX.yourdomain.com -> domains/yourdomain.com/subdomains/cityX/public_html
www.otherdomainX.com -> domains/otherdomainX.com/public_html
As you could see, each website would have its own directory and that could help you later to have specific images or templates directory for each slave site.
See video CP-05 that show how to have specific directories.
www.jms2win.com/en/tutorial#jms12x-CP-05
In addition, I do not recommend to put all the AddOn or Subdomain as a subdirectory of the "primary domain" to avoid it is published from this primary domain.
Concerning the DB and the content, get inspired of the video 16.
www.jms2win.com/en/tutorial#jms12x-16