Thank you for the responses. Atlassian provided the answer:
The reason this user cannot edit the template is because they do not have proper permissions. In order to do so, they will need space admin access at a minimum as described at the following page.
* [Working with Templates|https://confluence.atlassian.com/display/DOC/Working+with+Templates]
I was hoping to allow users to edit templates but not be able to administer the space.
Identifying the product this relates to would help, as well as broadening defintion of template/usage.
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