Yeah, pretty much.
It's just a matter of deciding what you want to use it for and that would probably determine where to place it in the circuit.
For example, you could add a loop before the distortion stage and use it for a pre-distortion EQ loop.
And/or you could add one after the distortion and before the chorus/reverb sends and use it for a Smart Gate and/or a post distortion EQ.
For something like that, I probably wouldn't even put it on a switch... just add TRS jack(s) and hard wire it in since you probably would want it in all the time. If you use the right female jack, there are some that will automatically bypass the loop if you don't have anything plugged into it.