Synchronization of folders (directories) basically means create or remove folder in all the places according to the last action of the user. Same algorithm is used to synchronize folders (directories) as for file synchronization. Files within a folder are synchronized independently on the folder itself.
Folder attributes are copied when Synctoy creates a folder on another device. However, unlike most folder backup programs, this synch software doesn't copy attributes if both source and target folders already exist.