diff --git a/lib/create.js b/lib/create.js
index <HASH>..<HASH> 100644
--- a/lib/create.js
+++ b/lib/create.js
@@ -145,9 +145,14 @@ module.exports.fetchTemplate = function(options, callback) {
  *   {Boolean} true if the app template exists locally.
  */
 
-module.exports.templateExists = function(options) {
-    return fs.existsSync(module.exports.templatePath(options));
-};
+ module.exports.templateExists = function(options) {
+     var templatePath = module.exports.templatePath(options);
+     return fs.existsSync(templatePath) &&
+            (
+                fs.existsSync(path.join(templatePath, 'config.xml') ||
+                fs.existsSync(path.join(templatePath, 'www/config.xml')
+            );
+ };
 
 /*!
  * Download, Extract, and Install App Template.
[#<I>] check to see if config.xml exists in the templateExists method