This is a very straightforward script that does just what its title says. There are two things to be careful about when you use this script and both are noted in the documentation for the application.
First, as the documentation says, use 'txt' files. If you try to use a file in another format, strange things may happen since the script tries diligently to create folders irrespective of the type of file one points the script to.
Second, and again as the documentation says, the new folders will be created in the same folder as the txt file.
So, if you need to create many files especially with lengthy names, folderMaker 1.3 is a good tool to have.