From the manual -

GO TO TOWN
Each time you play Might and Magic, your party of adventurers sets out from the inn in one of five towns:
1 SORPIGAL
2 PORTSMITH
3 ALGARY
4 DUSK
5 ERLIQUIN
The town from which you set out is the town containing the characters in your party. All characters, pre-programmed or created, first start out in Town 1, so this is where you begin the game. Later, as your party travels to and lodges in other towns, you will set out from Towns 2-5. From the Main Options Menu, type the NUMBER of the town. The screen will show a list of characters in that town. If there are no characters in the town you have selected, you will see the message: No Available Characters. From the list of characters in the town, you can:

1) View the Character Profile for any character on the list. Type the KEY LETTER to the left of the character's name. Press ESC to return to the list of characters in town.
2) Return to the Main Options Menu by pressing ESC. If you have set up a party but have not left the inn, your party will be disbanded. You can re-group it or a different party the next time you go to that town.
3) Add a character to or remove a character from your party of adventures