Or you can select the template in the webUI, hit the copy button, give it the desired name and delete the old one.
I'm sorry but the only way is to deleted and create it again. There is other way that may prevent this problem in the future. Instead the templates be stored in the printer memory, you can store it on any location in your network. For that you need to set the Template Poll Setup available in properties->services->scan workflow. The other thing to do is to create the template files (one for each template). This is easy, just set a template to save log files. You will see together with the scan file, one with the extension .XST. This is the one that you can modify, change the name, destination, etc. Then after placed in any shared folder set in the template poll, each time you need to do any change, it will be replicated in the printer. This is useful if you have many printers that share the same templates, you only need to do once to all printers.
How do you rename a scanning template that you have already created? You can change the "Friendly Name" but that's not the text that shows up on the Xerox LED display. The LED display shows the template name. Or if there is a way to display the "Friendly Name" on the Xerox instead of the template name, that would be a workable solution. I wish to avoid deleting and recreating the templates if possible.