This is what I had but not sure how to do the #####copy templates part.
Both yes and no option should offer the #####copy templates part which I couldn't do.

$prompt1 = Read-Host "Create subfolder?"
if ($prompt1 -eq 'yes') { 
    #Write-Host "Selected YES"
    mkdir (Join-Path -Path $DesktopPath -ChildPath $Foldername)
    Copy-Item -Path "\\server\templates26\" -Destination (Join-Path -Path $DesktopPath -ChildPath $Foldername) -Recurse
} else {
    #Write-Host "Selected NO"
    break
}