diff --git a/public/index.html b/public/index.html
index 107d601..7d3b210 100644
--- a/public/index.html
+++ b/public/index.html
@@ -534,6 +534,7 @@
         for (i = 0; i < genericExamples.length; ++i) {
           var element = genericExamples[i];
           new Choices(element, {
+            allowHTML: true,
             placeholderValue: 'This is a placeholder set in the config',
             searchPlaceholderValue: 'This is a search placeholder',
           });
@@ -542,6 +543,7 @@
         var textRemove = new Choices(
           document.getElementById('choices-text-remove-button'),
           {
+            allowHTML: true,
             delimiter: ',',
             editItems: true,
             maxItemCount: 5,
@@ -550,12 +552,14 @@
         );
 
         var textUniqueVals = new Choices('#choices-text-unique-values', {
+          allowHTML: true,
           paste: false,
           duplicateItemsAllowed: false,
           editItems: true,
         });
 
         var texti18n = new Choices('#choices-text-i18n', {
+          allowHTML: true,
           paste: false,
           duplicateItemsAllowed: false,
           editItems: true,
@@ -572,6 +576,7 @@
         });
 
         var textEmailFilter = new Choices('#choices-text-email-filter', {
+          allowHTML: true,
           editItems: true,
           addItemFilter: function(value) {
             if (!value) {
@@ -585,6 +590,7 @@
         }).setValue(['joe@bloggs.com']);
 
         var textDisabled = new Choices('#choices-text-disabled', {
+          allowHTML: true,
           addItems: false,
           removeItems: false,
         }).disable();
@@ -592,12 +598,14 @@
         var textPrependAppendVal = new Choices(
           '#choices-text-prepend-append-value',
           {
+            allowHTML: true,
             prependValue: 'item-',
             appendValue: '-' + Date.now(),
           }
         ).removeActiveItems();
 
         var textPresetVal = new Choices('#choices-text-preset-values', {
+          allowHTML: true,
           items: [
             'Josh Johnson',
             {
@@ -611,10 +619,12 @@
         });
 
         var multipleDefault = new Choices(
-          document.getElementById('choices-multiple-groups')
+          document.getElementById('choices-multiple-groups'),
+          { allowHTML: true }
         );
 
         var multipleFetch = new Choices('#choices-multiple-remote-fetch', {
+          allowHTML: true,
           placeholder: true,
           placeholderValue: 'Pick an Strokes record',
           maxItemCount: 5,
@@ -635,12 +645,14 @@
         var multipleCancelButton = new Choices(
           '#choices-multiple-remove-button',
           {
+            allowHTML: true,
             removeItemButton: true,
           }
         );
 
         /* Use label on event */
         var choicesSelect = new Choices('#choices-multiple-labels', {
+          allowHTML: true,
           removeItemButton: true,
           choices: [
             { value: 'One', label: 'Label One' },
@@ -675,6 +687,7 @@
         );
 
         var singleFetch = new Choices('#choices-single-remote-fetch', {
+          allowHTML: true,
           searchPlaceholderValue: 'Search for an Arctic Monkeys record',
         })
           .setChoices(function() {
@@ -695,6 +708,7 @@
           });
 
         var singleXhrRemove = new Choices('#choices-single-remove-xhr', {
+          allowHTML: true,
           removeItemButton: true,
           searchPlaceholderValue: "Search for a Smiths' record",
         }).setChoices(function(callback) {
@@ -712,6 +726,7 @@
         });
 
         var singleNoSearch = new Choices('#choices-single-no-search', {
+          allowHTML: true,
           searchEnabled: false,
           removeItemButton: true,
           choices: [
@@ -731,6 +746,7 @@
         );
 
         var singlePresetOpts = new Choices('#choices-single-preset-options', {
+          allowHTML: true,
           placeholder: true,
         }).setChoices(
           [
@@ -760,6 +776,7 @@
         );
 
         var singleSelectedOpt = new Choices('#choices-single-selected-option', {
+          allowHTML: true,
           searchFields: ['label', 'value', 'customProperties.description'],
           choices: [
             { value: 'One', label: 'Label One', selected: true },
@@ -777,17 +794,20 @@
         var customChoicesPropertiesViaDataAttributes = new Choices(
           '#choices-with-custom-props-via-html',
           {
+            allowHTML: true,
             searchFields: ['label', 'value', 'customProperties'],
           }
         );
 
         var singleNoSorting = new Choices('#choices-single-no-sorting', {
+          allowHTML: true,
           shouldSort: false,
         });
 
-        var cities = new Choices(document.getElementById('cities'));
+        var cities = new Choices(document.getElementById('cities'), { allowHTML: true });
         var tubeStations = new Choices(
-          document.getElementById('tube-stations')
+          document.getElementById('tube-stations'),
+          { allowHTML: true }
         ).disable();
 
         cities.passedElement.element.addEventListener('change', function(e) {
@@ -801,11 +821,12 @@
         var customTemplates = new Choices(
           document.getElementById('choices-single-custom-templates'),
           {
+            allowHTML: true,
             callbackOnCreateTemplates: function(strToEl) {
               var classNames = this.config.classNames;
               var itemSelectText = this.config.itemSelectText;
               return {
-                item: function(classNames, data) {
+                item: function({ classNames }, data) {
                   return strToEl(
                     '\
                 <div\
@@ -839,7 +860,7 @@
               '
                   );
                 },
-                choice: function(classNames, data) {
+                choice: function({ classNames }, data) {
                   return strToEl(
                     '\
                 <div\
@@ -889,9 +910,12 @@
           }
         );
 
-        var resetSimple = new Choices(document.getElementById('reset-simple'));
+        var resetSimple = new Choices(document.getElementById('reset-simple'), {
+          allowHTML: true,
+        });
 
         var resetMultiple = new Choices('#reset-multiple', {
+          allowHTML: true,
           removeItemButton: true,
         });
       });
diff --git a/src/scripts/choices.test.ts b/src/scripts/choices.test.ts
index a21dfc2..14af0a2 100644
--- a/src/scripts/choices.test.ts
+++ b/src/scripts/choices.test.ts
@@ -26,7 +26,7 @@ describe('choices', () => {
     passedElement.className = 'js-choices';
     document.body.appendChild(passedElement);
 
-    instance = new Choices(passedElement);
+    instance = new Choices(passedElement, { allowHTML: true });
   });
 
   afterEach(() => {
@@ -55,6 +55,7 @@ describe('choices', () => {
           `;
 
           const config = {
+            allowHTML: true,
             renderChoiceLimit: 5,
           };
           instance = new Choices('[data-choice]', config);
@@ -73,6 +74,7 @@ describe('choices', () => {
               `;
 
               instance = new Choices('[data-choice]', {
+                allowHTML: true,
                 searchEnabled: false,
               });
 
@@ -88,6 +90,7 @@ describe('choices', () => {
             `;
 
             instance = new Choices('[data-choice]', {
+              allowHTML: true,
               renderSelectedChoices: 'test' as any,
             });
 
@@ -108,7 +111,7 @@ describe('choices', () => {
         const inputs = document.querySelectorAll('[data-choice]');
         expect(inputs.length).to.equal(3);
 
-        instance = new Choices();
+        instance = new Choices(undefined, { allowHTML: true });
 
         expect(instance.passedElement.element.id).to.equal(inputs[0].id);
       });
@@ -116,7 +119,7 @@ describe('choices', () => {
       describe('when an element cannot be found in the DOM', () => {
         it('throws an error', () => {
           document.body.innerHTML = ``;
-          expect(() => new Choices()).to.throw(
+          expect(() => new Choices(undefined, { allowHTML: true })).to.throw(
             TypeError,
             'Expected one of the following types text|select-one|select-multiple',
           );
@@ -133,7 +136,7 @@ describe('choices', () => {
         });
 
         it('sets the initialised flag to true', () => {
-          instance = new Choices('#input-1');
+          instance = new Choices('#input-1', { allowHTML: true });
           expect(instance.initialised).to.equal(true);
         });
 
@@ -141,6 +144,7 @@ describe('choices', () => {
           const initSpy = spy();
           // initialise with the same element
           instance = new Choices('#input-1', {
+            allowHTML: true,
             silent: true,
             callbackOnInit: initSpy,
           });
@@ -156,12 +160,12 @@ describe('choices', () => {
           `;
 
           // initialise once
-          new Choices('#input-1', { silent: true });
+          new Choices('#input-1', { allowHTML: true, silent: true });
         });
 
         it('sets the initialised flag to true', () => {
           // initialise with the same element
-          instance = new Choices('#input-1', { silent: true });
+          instance = new Choices('#input-1', { allowHTML: true, silent: true });
 
           expect(instance.initialised).to.equal(true);
         });
@@ -170,6 +174,7 @@ describe('choices', () => {
           const initSpy = spy();
           // initialise with the same element
           instance = new Choices('#input-1', {
+            allowHTML: true,
             silent: true,
             callbackOnInit: initSpy,
           });
@@ -185,7 +190,7 @@ describe('choices', () => {
             <input data-choice type="text" id="input-1" />
             `;
 
-            instance = new Choices('[data-choice]');
+            instance = new Choices('[data-choice]', { allowHTML: true });
 
             expect(instance.passedElement).to.be.an.instanceOf(WrappedInput);
           });
@@ -197,7 +202,7 @@ describe('choices', () => {
             <select data-choice id="select-1"></select>
             `;
 
-            instance = new Choices('[data-choice]');
+            instance = new Choices('[data-choice]', { allowHTML: true });
 
             expect(instance.passedElement).to.be.an.instanceOf(WrappedSelect);
           });
@@ -211,7 +216,7 @@ describe('choices', () => {
             <input data-choice type="text" id="input-1" />
             `;
 
-            instance = new Choices('[data-choice]');
+            instance = new Choices('[data-choice]', { allowHTML: true });
 
             expect(instance.passedElement).to.be.an.instanceOf(WrappedInput);
           });
@@ -223,7 +228,7 @@ describe('choices', () => {
             <select data-choice id="select-1"></select>
             `;
 
-            instance = new Choices('[data-choice]');
+            instance = new Choices('[data-choice]', { allowHTML: true });
 
             expect(instance.passedElement).to.be.an.instanceOf(WrappedSelect);
           });
@@ -235,7 +240,7 @@ describe('choices', () => {
           document.body.innerHTML = `
           <div data-choice id="div-1"></div>
           `;
-          expect(() => new Choices('[data-choice]')).to.throw(
+          expect(() => new Choices('[data-choice]', { allowHTML: true })).to.throw(
             TypeError,
             'Expected one of the following types text|select-one|select-multiple',
           );
@@ -250,6 +255,7 @@ describe('choices', () => {
 
       beforeEach(() => {
         instance = new Choices(passedElement, {
+          allowHTML: true,
           callbackOnInit: callbackOnInitSpy,
           silent: true,
         });
@@ -330,7 +336,7 @@ describe('choices', () => {
         passedElement.className = 'js-choices';
         document.body.appendChild(passedElement);
 
-        instance = new Choices(passedElement);
+        instance = new Choices(passedElement, { allowHTML: true });
       });
 
       describe('not already initialised', () => {
@@ -1188,7 +1194,7 @@ describe('choices', () => {
       describe('select element', () => {
         it('fetches and sets choices', async () => {
           document.body.innerHTML = '<select id="test" />';
-          const choice = new Choices('#test');
+          const choice = new Choices('#test', { allowHTML: true });
           const handleLoadingStateSpy = spy(choice, '_handleLoadingState');
 
           let fetcherCalled = false;
@@ -2063,7 +2069,7 @@ describe('choices', () => {
           output = instance._getTemplate(templateKey, customArg);
           expect(output).to.deep.equal(element);
           expect(instance._templates[templateKey]).to.have.been.calledOnceWith(
-            instance.config.classNames,
+            instance.config,
             customArg,
           );
         });