diff --git a/Actions/CreateApp/CreateApp.ps1 b/Actions/CreateApp/CreateApp.ps1
index f7e75e00a..7eef2cc12 100644
--- a/Actions/CreateApp/CreateApp.ps1
+++ b/Actions/CreateApp/CreateApp.ps1
@@ -82,7 +82,12 @@ try {
     try {
         $settingsJsonFile = Join-Path $projectFolder $ALGoSettingsFile
         $SettingsJson = Get-Content $settingsJsonFile -Encoding UTF8 | ConvertFrom-Json
-        if (@($settingsJson.appFolders)+@($settingsJson.testFolders)) {
+        'appFolders','testFolders','bcptTestFolders' | ForEach-Object {
+            if (-not ($settingsJson.PSObject.Properties.Name -eq $_)) {
+                $SettingsJson | Add-Member -MemberType NoteProperty -Name $_ -Value @()
+            }
+        }
+        if (@($settingsJson.appFolders)+@($settingsJson.testFolders)+@($settingsJson.bcptTestFolders)) {
             if ($type -eq "Performance Test App") {
                 if ($SettingsJson.bcptTestFolders -notcontains $foldername) {
                     $SettingsJson.bcptTestFolders += @($folderName)
diff --git a/RELEASENOTES.md b/RELEASENOTES.md
index a7d36bd61..f5210ea09 100644
--- a/RELEASENOTES.md
+++ b/RELEASENOTES.md
@@ -1,3 +1,7 @@
+### Issues
+
+- Issue 1296 Make property "appFolders" optional
+
 ## v6.1
 
 ### Issues