Normally a "template" in SharePoint is used as a document template for a Content Type on a document library. The users don't open the template document directly, they create a "New" document of the Content Type and gets a copy of the template.

How to create a Content Type which refers to a template located in your SharePoint sites (user option C): http://whitepages.unlimitedviz.com/2011/02/using-document-templates-with-lists-and-content-types-in-sharepoint/

Normally a "template" in SharePoint is used as a document template for a Content-Type on a document library. The users don't open the template document directly, they create a "New" document of the Content-Type and gets a copy of the template.

Check How to create a Content Type which refers to a template located in your SharePoint sites (user option C).