I'm just going by what's said here because i'm not about to go through installing it to find out.
So every town that wants to sell things needs to host their own instance? And make sure that their instance doesn't federate with other towns that are 'too far away'?
edit:
OK I read the readme.
Why not just setup communities on the server as locations? Why is there a need to install another server for every location that wants to sell things? Certainly one server could handle thousands of locations.