To allow network merchants to add new merchants, you need to grant the read and add privileges for Merchant. This enables merchants to access the Tools > Merchants screen and view merchants within the same network account.
With these permissions, merchants can open the window for adding new merchants. However, in the Account listbox, they will only see their own account. To display the names of all accounts, add the read privilege for Account name.
When creating a new merchant, a role must be selected. To allow visibility of role names, grant the read_own privilege (the merchant will see only roles created within their own account) or the read privilege (the merchant will see all roles from all accounts) for Role name.