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How to Use the Blank Patch with Embroidery:

When you buy blank pre-made patches, you need to digitize a shape line. This is a placement line that goes exactly around the shape of the patch and can be easily digitized by scanning the blank patch. Once scanned in, follow the shape of the patch accurately for good registration. If you have done much applique, then you will know this shape line as an applique outline stitch. It lets you know where to place your blank patch for stitching. Once you have digitized your outline stitch for the patch you have chosen, insert your design into that shape. Make sure it is centered, or in the correct place within that outline stitching.
Once you have merged your new design with the outline stitch, you are ready to stitch. With this technique, you do not have a big piece of fabric to frame, so use an adhesive backing instead. This is a backing that is similar to Wonder Under, except that you peel the paper off to expose the sticky adhesive side.
Cut a square of adhesive backing larger than your hoop size. Frame the backing paper-side-up. Once framed, score around the inside edge of the hoop. Then peel the paper away, exposing the adhesive. The first thing that the machine sews is the outline stitch you added to your design. After it has sewn the placement line, lay down your blank patch. The adhesive will secure the patch so that you can continue sewing the design. Once the design is completed, simply tear your patch away from the adhesive backing and you'll have a custom patch.