Thinking of this like file explorer so that all of the sheets are organized rather than in one long list for the users I add / share sheets to throughout the team. thanks
If I understand your question correctly:
If you setup SHARED Workgroups and share with limited rights eo end-users, then the file structure is locked. It's the same routine with "corporate level" reports and such.
End users can of course create their own file structures, sheets and reports, but those are local to that user, unless they start sharing them around as "gospel" at which time you need to have a Come to Daddy (or Mommy) chat with them.