Hi AK,
No, just have them save the xsn template to their desktop (or wherever). Then, right click on it and choose design. If they publish locally, they should be able to use form, but that only works for restricted forms. If you need domain trust, then you'll have to publish to a website, For full trust, you can use regform to create an msi that they can install locally, or send them a form in e-mail that is signed with a digital certificate.
Good luck!
Patrick Halstead [InfoPath MVP]
InfoPathDev
Patrick Halstead
Project Manager at Qdabra