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In Fable, and TLC, each level of a weapon has a set number of augment slots. Master weapons, the highest, non-legendary level, have 3 slots. The Frying Pan has the most at 4.
In addition, you can buy the Augment Remover on Knothole Island to make the slots blank again. To remove augments from your weapons in Fable II without this Augment Remover, you can give said weapon to the archaeologist Belle Rennock and there is a chance that she will return it, minus any augments. Save your game before trying this and "Quit without Saving" if she keeps the weapon.