Are you the owner of the folder that you want to remove? If you are, it will delete the folder for everyone that it is shared with.
If you are not the owner of the folder, it will only remove it from your Drive and it will remain for the other users.
You can check to see if you are the owner by selecting the folder, clicking the Share icon , selecting Advanced, and then checking to see whose account has "Is owner" beside it.

Please let us know if we can assist you further with this.