Playing locally
To play locally, all players must be on the same wifi network. You can play with five friends in the same world using this method.
The player who wants to host the game needs to go into the options menu and make sure both "Multiplayer Game" and "Broadcast to LAN" are switched on.
Then the host should go into the map.
The other players can then press "Play" on the main menu, move over to the friends tab, and should see the host's game under "LAN Games". Just tap it to join.