diff --git a/app/main/views/templates.py b/app/main/views/templates.py
index fd3eab99a..5e4410a68 100644
--- a/app/main/views/templates.py
+++ b/app/main/views/templates.py
@@ -438,10 +438,12 @@ def manage_template_folder(service_id, template_folder_id):
         name=current_folder['name'],
         users_with_permission=users_with_folder_permission
     )
-
     if form.validate_on_submit():
         template_folder_api_client.update_template_folder(
-            current_service.id, template_folder_id, name=form.name.data
+            current_service.id,
+            template_folder_id,
+            name=form.name.data,
+            users_with_permission=form.viewing_permissions.data
         )
         return redirect(
             url_for('.choose_template', service_id=service_id, template_folder_id=template_folder_id)
diff --git a/app/notify_client/template_folder_api_client.py b/app/notify_client/template_folder_api_client.py
index d273b4dc8..f7015c1cb 100644
--- a/app/notify_client/template_folder_api_client.py
+++ b/app/notify_client/template_folder_api_client.py
@@ -42,10 +42,13 @@ class TemplateFolderAPIClient(NotifyAdminAPIClient):
             ))
 
     @cache.delete('service-{service_id}-template-folders')
-    def update_template_folder(self, service_id, template_folder_id, name):
+    def update_template_folder(self, service_id, template_folder_id, name, users_with_permission=None):
+        data = {"name": name}
+        if users_with_permission:
+            data["users_with_permission"] = users_with_permission
         self.post(
             '/service/{}/template-folder/{}'.format(service_id, template_folder_id),
-            {"name": name}
+            data
         )
 
     @cache.delete('service-{service_id}-template-folders')
diff --git a/app/templates/components/checkbox.html b/app/templates/components/checkbox.html
index 0a9e0907b..8adba1556 100644
--- a/app/templates/components/checkbox.html
+++ b/app/templates/components/checkbox.html
@@ -3,10 +3,11 @@
 {% macro checkbox(
   field,
   hint=False,
-  width='2-3'
+  width='2-3',
+  value='y'
 ) %}
   <div class="multiple-choice">
-    {{ checkbox_input(field.id, field.name, field.data) }}
+    {{ checkbox_input(field.id, field.name, field.data, value) }}
     <label for="{{ field.id }}">
       {{ field.label.text }}
       {% if hint %}
@@ -42,14 +43,17 @@
 
 {% macro checkbox_group(
   legend,
-  fields
+  fields,
+  set_value=False
 ) %}
   <fieldset class="form-group">
     <legend class="form-label">
       {{ legend }}
     </legend>
-    {% for field in fields %}
-      {{ checkbox(field) }}
-    {% endfor %}
+    {% if set_value %}
+      {% for field in fields %}
+        {{ checkbox(field, value=field.data) }}
+      {% endfor %}
+    {% endif %}
   </fieldset>
 {% endmacro %}
diff --git a/app/templates/views/templates/manage-template-folder.html b/app/templates/views/templates/manage-template-folder.html
index 9541e9106..540609792 100644
--- a/app/templates/views/templates/manage-template-folder.html
+++ b/app/templates/views/templates/manage-template-folder.html
@@ -25,7 +25,7 @@
   {% call form_wrapper(action=url_for('main.manage_template_folder', service_id=current_service.id, template_folder_id=template_folder_id)) %}
     {{ textbox(form.name) }}
     {% if current_service.has_permission("edit_folder_permissions") %}
-      {{ checkbox_group("Users who can see this folder:", form.viewing_permissions) }}
+      {{ checkbox_group("Users who can see this folder:", form.viewing_permissions, set_value=True) }}
     {% endif %}
 
     {{ page_footer(
diff --git a/tests/app/main/views/test_template_folders.py b/tests/app/main/views/test_template_folders.py
index 976b7b164..c1ba415c4 100644
--- a/tests/app/main/views/test_template_folders.py
+++ b/tests/app/main/views/test_template_folders.py
@@ -454,7 +454,7 @@ def test_get_manage_folder_page(
         assert "Users who can see this folder:" in form_labels[0].text
         checkboxes = page.select('input[name=viewing_permissions]')
         assert len(checkboxes) == 1
-        assert checkboxes[0]['value'] == 'y'
+        assert checkboxes[0]['value'] == active_user_with_permissions.id
         assert "Test User" in page.findAll('label', {'for': 'viewing_permissions-0'})[0].text
 
 
@@ -494,7 +494,7 @@ def test_rename_folder(client_request, active_user_with_permissions, service_one
         'main.manage_template_folder',
         service_id=service_one['id'],
         template_folder_id=folder_id,
-        _data={"name": "new beautiful name"},
+        _data={"name": "new beautiful name", "viewing_permissions": [active_user_with_permissions.id]},
         _expected_redirect=url_for("main.choose_template",
                                    service_id=service_one['id'],
                                    template_folder_id=folder_id,
@@ -504,7 +504,39 @@ def test_rename_folder(client_request, active_user_with_permissions, service_one
     mock_update.assert_called_once_with(
         service_one['id'],
         folder_id,
-        name="new beautiful name"
+        name="new beautiful name",
+        users_with_permission=[active_user_with_permissions.id]
+    )
+
+
+def test_manage_folder_users(
+    client_request, active_user_with_permissions, service_one, mock_get_template_folders, mocker
+):
+    mock_update = mocker.patch('app.template_folder_api_client.update_template_folder')
+    folder_id = str(uuid.uuid4())
+    mock_get_template_folders.return_value = [
+        {'id': folder_id, 'name': 'folder_two', 'parent_id': None, 'users_with_permission': [
+            active_user_with_permissions.id
+        ]}
+    ]
+    mocker.patch('app.models.service.Service.get_team_member', return_value=active_user_with_permissions)
+
+    client_request.post(
+        'main.manage_template_folder',
+        service_id=service_one['id'],
+        template_folder_id=folder_id,
+        _data={"name": "new beautiful name", "viewing_permissions": []},
+        _expected_redirect=url_for("main.choose_template",
+                                   service_id=service_one['id'],
+                                   template_folder_id=folder_id,
+                                   _external=True)
+    )
+
+    mock_update.assert_called_once_with(
+        service_one['id'],
+        folder_id,
+        name="new beautiful name",
+        users_with_permission=[]
     )
 
 
diff --git a/tests/app/notify_client/test_template_folder_client.py b/tests/app/notify_client/test_template_folder_client.py
index bfd615e2f..a679d9e98 100644
--- a/tests/app/notify_client/test_template_folder_client.py
+++ b/tests/app/notify_client/test_template_folder_client.py
@@ -111,13 +111,13 @@ def test_update_template_folder_calls_correct_api_endpoint(mocker):
     some_service_id = uuid.uuid4()
     template_folder_id = uuid.uuid4()
     expected_url = '/service/{}/template-folder/{}'.format(some_service_id, template_folder_id)
-    data = {'name': 'foo'}
+    data = {'name': 'foo', 'users_with_permission': ['some_id']}
 
     client = TemplateFolderAPIClient()
 
     mock_post = mocker.patch('app.notify_client.template_folder_api_client.TemplateFolderAPIClient.post')
 
-    client.update_template_folder(some_service_id, template_folder_id, name='foo')
+    client.update_template_folder(some_service_id, template_folder_id, name='foo', users_with_permission=['some_id'])
 
     mock_post.assert_called_once_with(expected_url, data)
     mock_redis_delete.assert_called_once_with('service-{}-template-folders'.format(some_service_id))