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In this Vocabulary Worksheet Factory 5 video, the presenter demonstrates how to work with templates to create vocabulary documents. Templates allow for the quick creation of visually appealing worksheets and help prevent accidental changes to the original template. Unlike using a saved document, which risks overwriting the original without using the Save As function, templates ensure users open a new document each time. The video begins with the presenter showcasing an already created document and plans to illustrate how it can be reused annually. Updates and deletions of templates are possible, but they provide a safeguard against unintentional modifications.