Why is there a band near the end of bath towel which is flatter than the rest of the material?

There are lots of guesses.
1. It is a part of the weaving process, called a dobby, a place to embroider a brand name or other decoration.
2. It's almost the only way to tell one brand from another.
3. So you can fold all towels the same way, so they fit nicely on a shelf.
4. So when you pick it up it feels like a towel instead of a big rag.
5. No particular reason, just tradition.