Issue with New user registration with new blog templates

I've created a template for all new users and set it as default. Problem is when a new user registers they get this message:

You attempted to access the "template1" dashboard, but you do not currently have privileges on this site. If you believe you should be able to access the "template1" dashboard, please contact your network administrator.

If you reached this screen by accident and meant to visit one of your own sites, here are some shortcuts to help you find your way.

Your Sites

wondermins test journal Visit Dashboard | View Site

How can I allow new users access to this template when they sign up by default?

Many thanks in advance.