Types of folded towels include V-fold, C-fold and Z-fold, in packages counting anywhere from 100 to 250. Dispensers for folded towels can be placed on the countertop or on the wall, are not mechanized and need no batteries to function. They are typically lightweight, made out of metal such as steel or durable plastic, and hold multiple types of fold towels.

When being dispensed from a wall unit, folded towels are pulled from a slot in the bottom of the dispenser, and are intended to come out one at a time. Some lower-quality towels are susceptible to tearing when pulled, so it is best to invest in a higher quality towel for these dispensers. Waste and theft are concerns in some facilities, as end-users are not prevented from taking unlimited amounts of product from the dispenser.

While fold towel dispensers are more labor-intensive since fold towels need replacement more frequently than a roll towels, they are suited well for low- to medium-traffic restrooms such as those in public facilities, offices and restaurants.