Yes, you need to add fields. For this example you can add 4 menu fields:
Categories
The example assumes 3 options. the default 'Choose' will display none of the sub menus. The first options will display the Cars menu. The second option will display the Planes manu. The third will display the Planes and Ships menus. This is defined in the menudependcies array in the JS tab and you can change that definition to display the menus differently as desired. Note that that you can put anything you want in the option labels.
Cars
With some options.
Planes
With some options.
Ships
With some options.
The add template can look something like the following:
<div id="addtemplate">
<div id="category">Categories: [ [Categories]]</div>
<div id="cars">Cars: [ [Cars]]</div>
<div id="planes">Planes: [ [Planes]]</div>
<div id="ships">Ships: [ [Ships]]</div>
</div>
<script>
// Set the onchange event of the category menu.
var category = document.getElementById('[ [Categories#id]]');
category.onchange = function() {showHideSubmenus(this.selectedIndex);};
showHideSubmenus(category.selectedIndex);
</script>
(If you copy this code you need to remove the redundant spaces between square brackets)
hth