You can certainly look at creating cities as the categories (particularly if it's as specific as you describe), outside of this, the theme doesn't separate listings into locations.
The default rating system in Vantage does not allow multiple parameters, it is one overall rating for the business. There is no flag/report feature.
You can find an example of the Rating functionality on the Vantage demo site
here in the "Reviews" tab.
Current Vantage search does not include custom fields.
There is a contact business option on a listing, but not specifically any options to communicate for edits as mentioned.
Businesses require their own login for placing listings, which in turn allows them to edit listings and respond to reviews.
As above, businesses can be contacted directly via the listing.
Vantage is not encrypted, so you are free to make modifications as you wish. AppThemes does not offer these services, however we do have a
certified partners page where you can find developers for hire. Thanks.