The advertisement included the Burger Fuel branding and logo and said, "death before bad burgers".
Complainant C. Dixon said the images were "highly offensive, sexually explicit and inappropriate for children in a family restaurant".
In the lengthy complaint was a reference to the fact they were also saying something on behalf of their young daughters.
"My girls aged 9 and 7 felt strongly that the image was 'dumb' and 'yuk' and 'embarrassing'. Please help remove this graphic immediately and restore our faith in
justice and integrity."
Burger Fuel argued that the drawings were not explicit, the style was artistic and the napkin holders did not constitute an advertisement.
However most of the Complaints Board said the advertisement was offensive; the caricature of the two women was sexually explicit, showing them wearing only fishnet stockings in sexually suggestive poses, which were likely to cause offence to women, and people in general.
It said the advertisement was in a burger restaurant where it was exposed to a wide audience, including children and used sexual imagery to sell an unrelated product, in breach of several advertising rules relating to public offense.
Burger Fuel was ordered to remove the napkin holders.
The company apologised to those who had been offended.
"We would also like to acknowledge that we do understand we may have caused some offence to a particular group of people that do not agree with the use of the human body, especially the female body in advertising, and would like to apologise for upsetting these individuals."