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In this Vocabulary Worksheet Factory 5 tutorial, the presenter demonstrates how to utilize templates to create vocabulary documents. Templates are beneficial for quick creation of visually appealing worksheets, allowing users to avoid the risk of altering original documents when using the "Save As" function. Instead, templates open as new documents, preserving the original template unchanged. While templates can be updated or deleted, they prevent accidental modifications. The presenter begins with a pre-created document and aims to design a reusable template for annual use.