We saw a lot of towels with band or strips which has no pile or loops on it. And the band usually with embroidery logo, we call the band border. The borders or stripes of the towel used as a decoration purpose, that is all. I can not even remember when it comes into popularity. There is a band cross the towel widthwise, without pile loops on it. I speculate that it came from hospitality industry demand originally, because of business always want their logo everywhere, the towels they provide to their customer is not exceptional of cause. The regular way is use embroidery, but the pile loops always are jeopardised. So embroidery on the border will perfectly avoid such problem.
Dobby is a mechanical part attached to a loom that controls the harnesses so as to permit weaving of repeat small geometric figures. Without dobby, we can not get the border done. The dobby is different from jacquard, it can only get simple geometric figures .
The band can be anywhere of the towel, if only it is widthwise across the towel. Otherwise, there would be a different design and technique.