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In this Vocabulary Worksheet Factory 5 video tutorial, the presenter explains how to utilize templates for creating vocabulary documents. Templates allow users to quickly produce visually appealing worksheets without the risk of altering the original template document. Instead of using a saved document—which poses the risk of accidental changes—a template ensures that when opened, it creates a new document, maintaining the integrity of the template itself. The tutorial begins with an already created document that the presenter intends to adapt for annual use, highlighting the efficiency and safety advantages of using templates in document creation.