Whilst looking on the Madeira website for their AFS system and any updates for my machine (PR600), I followed their link to the official AFS System website. On this site they have instructions to digitize your own badges (patches) also a lot of ready digitized templates, plus samples to download.
I used some Badge Master (heavy guage water soluble) and floated a piece of tear away stabilizer (to add extra body, but removed before the outline stitching) under the BM and stitched out one of the sample designs. The results are absolutely brilliant, no fuzzies on the edge and a very clean finished badge.
Worth a look and download of the files.
AFS - Embroidery Frame
Sharon