I remember many years ago (before some of you were born) I used to buy the striped edge towels and sometimes I got them with a stamped pattern or else I would buy transfers and iron them on myself. I still have some iron-ons, but I'm not sure how well they'll transfer after all these years. My sister still has one of my towels that she salvaged from my mother's stuff.
I love those stripe edge towels. They reproduce them now. I bought some of the yardage online.
Also the dollar store has towels sometimes very suitable for embroidery. Once washed and machine dried the weave tightens up and they work really well.
I embroidered this on a dollar store towel.