The branding patch comes in two forms: Woven and embroidered. Custom Patches may be square, circular, or cut into any specific shape requested. Patches are permanent fixtures to fabric---they are usually affixed to the outside of the garment and not intended to be cut off or removed easily like clothing labels can. Oftentimes, they are conspicuous and contain emblems, logos, and written information.
Woven patches have higher definition of the graphic and lettering edges than embroidered. They are usually 30-50% cheaper to manufacturer and have a quicker turnaround time. Oftentimes they are flatter and easier to sew or iron on. A woven patch that is cut into a shape other than a square is said to be either "laser cut" or "die cut". Because many patches are larger than standard woven clothing labels, a lot more company logo or lettering detail can be captured and produced. A larger area mean greater graphic detail capabilities.
Embroidered patches have a higher three-dimensional "lift" to the fabric. This lift is due to densely stitched or "embroidered" thick threads. Embroidered stitching provides a classy look, but is not the best choice for capturing fine detail, containing costs, or with working with tight production schedules.
Embroidered patches usually start at a dollar or more per piece.
You can assess your budget and graphic requirements and determine which is the best choice for your project. If budget is a primary concern, then definitely consider the laser cut woven patches. If budget is less of a concern and you want a three-dimensional texture to your patch, then embroidery is the way to go. Now that you are armed with basic information, you can make informed sourcing choices based on your customer's requests and budget.