If NTFS permissions are not propagating / cascading down to subfolders, it’s probably because the subfolder has a different owner, so you don’t have permission to cascade the permission down.
To fix this, use the following command (run in an elevated command prompt – in other words, right click the command prompt and click Run as Administrator):
takeown /f C:\FolderName /r /d y
This will make your admin account the owner of those folders, and you will then be able to set the permissions of those folders (you may have to log in as the administrative account that you used to elevate the command prompt).