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In this Vocabulary Worksheet Factory 5 tutorial, the presenter demonstrates how to effectively use templates for creating vocabulary documents. Templates enable users to quickly generate attractive worksheets without the risk of altering the original document, as they open as new documents. While saved documents can be modified, there's a chance of accidentally overwriting them if "Save" is used instead of "Save As." By employing templates, users ensure the original remains unchanged. The tutorial begins with a pre-created document that the presenter plans to further customize for annual use.