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In this Vocabulary Worksheet Factory 5 tutorial, the presenter demonstrates how to utilize templates for creating vocabulary documents. Templates are beneficial as they enable users to quickly produce visually appealing worksheets without altering the original template. Unlike saved documents, which risk overwriting, templates open as new documents, preventing accidental changes. The tutorial emphasizes the ease of updating and deleting templates while maintaining their integrity. The presenter begins with a pre-created document to illustrate the process, aiming to design a reusable worksheet for annual use.