Yes, you can set up multiple installs. You do need to be careful that you don’t ever create anything in the “parent” multisite (at example.com
) that has the same slug as the folder you place the “child” multisite (at example.com/bananas
) – so in the bananas example, never create a Post, Page, Category, Tag, etc. with the slug bananas
in the parent site.
You could also consider a Multi-Network – which is basically a MultiSite of MultiSites. Most plugins aren’t compatible with these, so if you rely on a lot of plugins that may not be the way you want to go, but it can help ensure you don’t have conflicting slugs that cause the “Do I show the actual folder, or the content at this slug?” conundrum.
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