The following illustration explains the Template and Application relationship.
Here you can see that if you change something at the template level, the applications based on that template will be affected. Conversely, if you change something on the application level, only the individual application will be affected. This inheritance relationship is beneficial if you need to make a great deal of changes quickly. For example, rather than change one item on 100 applications that are based on a single template (which requires 100 changes), you can more easily change the one item on the template. That one change in the template will trickle down to all 100 applications that are based on the template.
Now you know the secret that makes SAM so powerful and flexible!