What happens to app content/data with Family Sharing?

Hello -
My girls, 10 and 12-yrs old, have been on my Apple ID for years.  We've muddled through by me just turning off and on certain permissions, but I'd like to considering Family Sharing and getting them their own Apple IDs.  I just got an iPhone 6 and we're passing the iPhone 5S to my eldest daughter, so it's an opportunity to do this now.
I've read all the instructions of setting up the kids in family share and how that works - I get that.
The question I have is whether everything has to be "recreated" on her phone?  So, if I set up a new Family Sharing account for her and activate it on her phone, will all of the apps and content disappear, so we have to then redownload every app?  In that case, won't the apps be "empty" of data?
So, for example, she and her friends have made a bunch of Video Star videos that live in the app.  I'm trying to figure out - if I set her up with a new Apple ID on Family Sharing, is all that data going to be gone? 
Or, any progress in a game (like Smurfs Village that literally has been played over years - or can she sign in as me from the Game Center ID with that one to have it be the same)?
Thanks for your help -

If you re-download the apps under a different ID, you'll lose all saved data.

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