Flamestrike
Legend
There are five goblins. Each of them roll Stealth checks: 8, 9, 10, 11, and 12. There are five PCs. Between them, they have passive Perceptions of 10 and 11. I see this going one of two ways:
1) The four goblins who rolled 11 and under on their Stealth checks are seen but the one who rolled 12 isn't; he has surprise and is the only person who can go in Round 1. Or:
2) None of the goblins get surprise since four out of five are seen, though the one that rolled 12 is hidden and will get Advantage as normal.
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The player characters are not surprised on round one. They noticed at least one of the goblins.
Roll initiative as normal. Take turns in order. Some of the goblins are hidden, so they can't be targeted by the player characters who probably don't even know there there. When those goblins turns come up in the order they can attack from hiding with advantage.