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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 allow for the quick production of visually appealing worksheets without the risk of altering the original document. Unlike saved documents, which may be inadvertently modified if the "Save" function is used instead of "Save As," templates open as new documents, safeguarding the original template from changes. The tutorial starts with an already created document that will serve as a foundation for developing a reusable template for future use.